Once again influenced by the US stimulus news over the weekend, gold found itself slightly gapping high @ 1703 on Monday Asian session opening, reached the resistance line(2) with a day high @ 1714. But the buying was weak above 1710, the price has soon dropped below the gap(1) in the European session. Gold fell to a 8-months low @ 1676 in the US session & the day ended at 1683. The support line has now shifted from (4) to (5) in the past 24 trading hours since the false breakout(3). While the downward triangular pattern is tightening, we can expect a breakout very soon.
Gold is still trading in a M-T downtrend trend within zone (6) on the daily chart. The price broke the L-T support line(7) yesterday, setting both the M-T & L-T trends are now downward. A bottom-out signal is yet to be seen.
S-T Resistances:
1705
1697-1700
1690
Market Price: 1688
S-T Supports:
1680
1676
1665
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