Gold Trend 04/06

Gold slid over 2% yesterday. The market was opened near day-high 1908. The price has broken the bottom of the triangle pattern(1) early in the European session, showing a sign of weakness. It then dropped further to day-low 1864 at the US session, with the trading day ended at 1870, down by USD 37.

Gold has broken yesterday's low 1864 early in the Asian session today. The trading range for today can now be set between 1855-80 after it has touched 1855. For now, if the price can stand above 1870 in the coming European session, the price should be able to rebound to 1880 in S-T.


The uptrend originated from May 03 is now completed after the price has broken the support line(3) on the daily chart. The price has reached our 1st consolidation target of 1865(4) yesterday. While the price has touched the M-T support line(5) and quickly rebounded early in the Asian session today, the buying support seems to be strong below 1860. The price is currently resisting at the 20 days MA(6). If the price can stay above the 20 days MA in the next 24 hours, the day-low 1855 can be seen as a bottom on the daily chart, leading to a round of S-T rebound.

S-T Resistances:
1889-90
1880
1872

Market Price: 1870

S-T Supports:
1865
1860
1855

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