I’ve got my eye on these long-term correction plays on gold and the Loonie, plus these potential upside targets on LTC. Take a look!
XAU/USD: Daily
Gold prices have been trending lower for quite some time, cruising inside a descending channel on its daily time frame.
Price is currently testing the channel bottom and might be due for a countertrend bounce, especially since Stochastic is hanging around the oversold region.
In that case, XAU/USD could retreat to the upside targets marked by the Fibonacci retracement tool. If you’re looking to short gold, you could wait for a test of the 61.8% level that lines up with the channel resistance and the moving averages dynamic inflection points.
LTC/USD: Daily
Litecoin is chillin’ like a villain right on top of its rising trend line visible on the daily chart. This happens to line up with a former resistance zone that could now hold as a floor.
The gap between the moving averages is widening to reflect strengthening bullish momentum, so there could be a strong chance that buyers defend this support area. At the same time, Stochastic is hinting that sellers could use a break.
In that case, LTC could recover to the upside targets marked by the Fib extension tool. The 38.2% level is around the $200 mark while the full extension is at $281.35.
CAD/CHF: Daily
This forex pair is already in correction mode, testing the 38.2% Fibonacci retracement level that coincides with the mid-channel area of interest on the daily chart.
A larger pullback could last until the 61.8% Fib that’s near the .7050 minor psychological support or up to the very bottom of the channel that’s closer to the moving averages.
Stochastic is just starting to head south from the overbought zone, so sellers could have more energy to take CAD/CHF lower. A bullish crossover just formed, though, so buyers might step up to defend support levels from here.
