Gold dropped over 2% yesterday. As the trading began at 1807 to start the day, the price touched the day-high at 1812 early in the Asian session. The momentum began to turn bearish during the European session. Gold cleared the 1800(1) support at the US session opening and then fell further, breaking the previous low of 1784 after the US released better than expected Factory Orders figures. It touched a new 6-months low of 1764, ending the day with a USD 42 drop.
The bullish pattern on the 1-hour chart from last Friday was totally destroyed by the drop yesterday. The S-T trend is weakening while the price trades below its previous low of 1784. Expect the price to stay between 1750-83(2) for today. If the price can carry the selling momentum from yesterday, it should be able to touch 1750 or below.
The daily chart is now dominated by the downtrend channel(4) after gold closed below the critical support of 1800(3). The price has traded in the range of 1800-70(5) for the past month; by measuring the 1:1 ratio, the downside target can be set at 1730 technically.
S-T Resistances:
1785
1780
1770-72
Market price: 1767
S-T Supprots:
1765
1760
1750
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P. To
The bullish pattern on the 1-hour chart from last Friday was totally destroyed by the drop yesterday. The S-T trend is weakening while the price trades below its previous low of 1784. Expect the price to stay between 1750-83(2) for today. If the price can carry the selling momentum from yesterday, it should be able to touch 1750 or below.
The daily chart is now dominated by the downtrend channel(4) after gold closed below the critical support of 1800(3). The price has traded in the range of 1800-70(5) for the past month; by measuring the 1:1 ratio, the downside target can be set at 1730 technically.
S-T Resistances:
1785
1780
1770-72
Market price: 1767
S-T Supprots:
1765
1760
1750
If you like our work, kindly give our team a thumbs up. Feel free to leave a comment; let us know what you think!
P. To
P. To @ 1uptick Analytic
