A heavy volume flash crash of over $2 billion notional in gold futures this morning sent gold below its 100- and 200-day moving averages, but the bounce that followed could continue, Citigroup (C) - Get Report said.
Citi said gold is testing a strong area of support from $1,233 to $1,237, in line with the recent May-June rally that followed an early May selloff.
Citi confirmed triple weekly momentum divergence on gold, suggesting the commodity's downward trend is running out of steam.
This morning's flash crash has many scratching their heads. Some analysts suggested a 'fat finger' erroneous trade triggered the initial fall, the Financial Times reported.
What's Hot On TheStreet
Unusual to hear these words: Under Armour's (UAA) - Get Report founder Kevin Plank has never been one to sound weak in a public setting. Plank is known for his motivational speeches to employees and desire to crush all competition. So, it was odd to hear Plank say rival Nike (NKE) - Get Report "isn't playing fair" on the Today Show on Sunday -- it sounded like a CEO who after several below plan quarters is finally realizing how challenging it will be to dethrone Nike.
Hat tip to Ford: A noted supporter of recycling, auto legend Henry Ford would be proud to know his spirit of conservation is still alive and well in the company that bears his name.
And in fact, as TheStreet learned on a recent trip to Ford's (F) - Get Report Dearborn, MI. headquarters, the founder's recycling efforts have been taken to a whole other level. Within Ford's Plastics and Materials Sustainability Research Department, which is tasked with finding ways to create auto parts from things found in the Earth such as soybeans and agave plants, senior technical leader Deborah Mielewski showed off a new coin tray made from shredded cash.
It took about $400 of cash to make the coin tray, said Mielewski.
Shout out to the 1990s: It may be time to cash in those Tesla (TSLA) - Get Report stock gains and go out and buy one of these new classic cars, TheStreet reports. There are several models from 1992, including the early version of the Dodge Viper, that are starting to take off in value.
Nestle rips to a high: Shares of chocolate maker Nestle touched an all-time high Monday after activist investor Third Point, led by Dan Loeb, revealed it had built a stake in the group and pressed for asset sales and increased buybacks. The stake is worth more than $3.5 billion, making Third Point one of Nestle's top 10 shareholders. For Loeb, this is one of his boldest bets yet as he tries to shake up the staid consumer packaged goods giant.
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