While the equity market rally has stalled due to low investors participation with Christmas Holidays and the Year End holidays coming up, the precious metals market, Gold, Silver, Platinum and Palladium continues to rocket up
Gold, Silver, Platinum and Palladium weekly chart
Santa Clause rally started on Thursday last week, and should continue on Monday, with the next key resistance to break at 25.800-25.900.
A break of that resistance is going to trigger a lot of forced short-covering. If so, the next higher resistance is at 226,400.
A gap-up open for NQ on Thursday but then it traded sideways the rest of the day
Intraday support is 25,200 and intraday resistance is at 25,350
The daily chart is bullish, and if it can trade above 25,350 we could se a burnish day on Friday with the next major resistance at 25,800
A large down day for NQ on Wednesday. As such, we could see either a sideways consolidation or another large down day again.
Resistance is 25,300 and support is 24,000
Santa Clause rally is still illusive, as AI companies, NDIDIA and Oracle drag NQ down with it.
A sideways morning price action that was followed by late day rally from oversold bounce on Tuesday. Without major negative news in the morning the rally should continue overnight and into the morning session. If so the enxt resistance is at 25,400 on the December contract.
NQ would need to break back below 25,000 to turn bearish again.
Is Santa Clause Rally just starting?
A sideways consolidation day on Monday following a large down day on Friday..On Tuesday we could see three scenarios that could happen.
If NQ stays above key support 25,000, we could see another sideways choppy trading action, or an oversold rally,
A break below 25,000 price level could cause a cascade of selling, with the next support at 24,000. It is possible to get to 24,000 in one or two days.
Santa Clause Rally is still holding this market up, but against strong selling pressure, will it hold? We shall see.
A large down-day for NQ on Friday which started with a large selling in the morning followed by a sideways pattern in the afternoon, setting up for another large selling on Monday. unless NQ can break back above 25,350
The next strong support is at 25,000.
FOMC decision announcement on Wednesday. As such we could see the stock market goes either way, up or down or stay sideways, as it all depends on what the Fed says about what they are going to do.
What we know is that the Yen carry trade is dragging the market down against the Fed liquidity injection and the bullish Santa Clause rally bullish session.. We just have to wait see.
A sideways narrow range pattern for NQ on Monday. Tuesday is likely to be the same as investors wait for the FOMC official announcement on Wednesday.
A factor that can influence the pattern is the Japanese yen carry trade. Heavy unwinding could easily overwhelmed positive action by the Fed and cause unexpected heavy selling, a black swan event..
A normal Friday sideways trading action last Friday. The FOMC will announce their decision on monetary policy on Wednesday and it is expect to cut short term interest rates by 25 basis point.
The Fed is also expect to announce a new Treasury purchase programs, (new money printing program) which should be bullish for precious metals and also for the stock markets.
Key resistance zone for NQ on Monday wilt be at 25,800-25,900. Bullish above it.Support is 25,500.
After trading for three conswcutive days below double-top resistance, NQ looks ready to break above 25,900 and rocket higher.
However, sice Friday tends to be a choppy sideways day, it is also possible NQ would need to wait until next week to breakout aboev 25,900 resistance
25,500 is key intraday support for NQ on Friday
FOMC meeting next week
A choppy day on Tuesday. The rally shuld continue but in a choppy pattern because the stock market is in a very overbought zone.
December is a bullish month, with the Santa Clause rally condition. As such the short are stating to cover causing a slow rally.
Key intraday support for NQ on Wednesday will be at 25,400, bullish above, bearish below it
