Two trades to watch Next surges 8 Gold bugs look to Georgia elections

Next share price hits 6 year high, is there more upside to come?

Total full price sales fell by just -0.5% in Q4 despite lockdown disruptions as online sales made up for disastrous bricks and mortar sales.
Online sales soared by 38%, whilst in store sales plunged by 43%, highlighting the retailer’s successful of its sophisticated online offering
Next warned that the sales boost will be almost completely wiped out by the third English lockdown, although investors shrugged off this warning sending the share price over 7% higher.

Next technical analysis
Next has recovered well from its mid-March sell off producing a series of higher highs and higher lows over the past 9 months. It trades comfortably above the ascending trendline dating back to early April and also above its 20, 50 and 100 sma on the daily chart, suggesting that there could be more upside to come.

The RSI sits over 50 in bullish territory but importantly remains below the overbought level of 70 again supporting the idea that further gains could be had.

Whilst the rally had stalled around 7250 in recent sessions the February 2020 high. However, today’s surge has significantly taken that level out and 7350 the 2019 high and has brought 7600 a level last seen in 2016 into focus ahead of 8000 just shy of the all time high recorded in

On the flip side, support can be seen at 7350, 2019 high before the psychological level of 7000 and the 20 sma on the daily chart at 6838.

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Gold’s bullish bias remains ahead of Georgia’s elections

Georgia’s critical senate election is in focus
Gold bulls are rooting for a Democratic win of both seats which Joe Bidden needs for Democratic control over the Senate. This would make it easier for the President -elect to push for additional fiscal support.

Gold technical analysis
Gold is slipping lower after 6 straight sessions of gains. The precious metal surged over 1.5% in the previous session, hitting a 2 month high of $1847 overnight before easing back slightly. At the time of writing Gold trades -0.1% at $1940.

Gold had been trading in a descending channel dating back to early August. Monday’s surge higher has resulted in a meaningful break out of the upside of the descending channel.

The move higher also pushed gold over its 100 sma on the daily chart. Gold now trades above its 20, 50 and 100 sma. The 20 sma also crossed above the 50 sma in adding to the bullish signals suggesting that there could me more upside coming. The bias remains bullish above $1900 trend line support.

Immediate resistance can be seen at $1947 yesterday’s high prior to $1965 November’s high, ahead of the key $2000 psychological level and $2050 August swing high.

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