Gold finally broke the range yesterday! The price has been under selling pressure during the Asian & European session, it breached the support 1770-72(1) at the US session, and fell all the way to 1750. The day ended at 1760, down by USD17.
After the price rebound to 1760 for the day's close, a new downtrend channel(3) has been created by the newly formed bottom near 1750. Notice, if the price can break the resistance line(2), it should be able to rebound to the top of the down channel(3). A mini-double top pattern(4) is on the go, the downside can be targeted around 1755. Yesterday's low 1750 and the bottom of the downtrend channel(3) are now the key supports. If gold resumes its fall in the next few days, the next target will be near 1735-40 on the 1-hr chart.
Although the gold price dropped to a new low near 1750, it has yet to break the previous low of 1761 as the price has closed near 1760 on the daily chart. Meanwhile, the M-T trend will stay weak in the next few days after the price has escaped the horizontal range of 1770-95(6.1). Measuring the range of (6.1), the 1:1 target will be near 1745(6.2) after the break. Thereafter, the next key support is now near the M-T support line(7).
S-T Resistances:
1775
1768-70
1760-61
Market price: 1758
S-T Supports:
1755
1750
1745
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After the price rebound to 1760 for the day's close, a new downtrend channel(3) has been created by the newly formed bottom near 1750. Notice, if the price can break the resistance line(2), it should be able to rebound to the top of the down channel(3). A mini-double top pattern(4) is on the go, the downside can be targeted around 1755. Yesterday's low 1750 and the bottom of the downtrend channel(3) are now the key supports. If gold resumes its fall in the next few days, the next target will be near 1735-40 on the 1-hr chart.
Although the gold price dropped to a new low near 1750, it has yet to break the previous low of 1761 as the price has closed near 1760 on the daily chart. Meanwhile, the M-T trend will stay weak in the next few days after the price has escaped the horizontal range of 1770-95(6.1). Measuring the range of (6.1), the 1:1 target will be near 1745(6.2) after the break. Thereafter, the next key support is now near the M-T support line(7).
S-T Resistances:
1775
1768-70
1760-61
Market price: 1758
S-T Supports:
1755
1750
1745
Please give us a thumbs up if you like our ideas. Leave us a comment and share your thoughts.
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