Gold pulled back from near the record high yesterday. The market opened at 2050, early in the Asian session. The fall technically began once the price crossed the support trendline(1); it fell all the way to the 1st support at 2020. It only took a short while to clear the support at 2020 & 2000(2). Gold touched day low 1975 at the US session, and the trading day finished at 1991, up by USD 58.
As mentioned yesterday, profit-taking began at the US session the day before, and the action has continued in the past 36 hours. The consolidation yesterday has completely retraced the gain from Tuesday with the price currently supported at 1970. Unless the conflict can be settled in Ukraine, the strategy should remain as "buy low" every time the price drops. 1970-2000(3) will be the range in the early trading. Need to be cautious... the market will trigger a new round of selling if the price break the critical support of 1950.
A reversal signal(4) has appeared after the consolidation yesterday. The climb originated from 1780 on Jan. 28 is now officially over, ending this USD 290 rally on the daily chart. Under the current market situation, it is now easy for the price to drop very deep; expect the price to trade sideways for now, between 1950-2065(5).
S-T Resistances:
2020
2000-03
1990
Market price: 1980
S-T Supports:
1974-70
1960
1950
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As mentioned yesterday, profit-taking began at the US session the day before, and the action has continued in the past 36 hours. The consolidation yesterday has completely retraced the gain from Tuesday with the price currently supported at 1970. Unless the conflict can be settled in Ukraine, the strategy should remain as "buy low" every time the price drops. 1970-2000(3) will be the range in the early trading. Need to be cautious... the market will trigger a new round of selling if the price break the critical support of 1950.
A reversal signal(4) has appeared after the consolidation yesterday. The climb originated from 1780 on Jan. 28 is now officially over, ending this USD 290 rally on the daily chart. Under the current market situation, it is now easy for the price to drop very deep; expect the price to trade sideways for now, between 1950-2065(5).
S-T Resistances:
2020
2000-03
1990
Market price: 1980
S-T Supports:
1974-70
1960
1950
If you like our work, kindly give our team a thumbs up. Feel free to leave a comment; let us know what you think!
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