Gold dropped to a 2-month low yesterday. The day began at 1932, carrying the selling momentum from last Friday. A fresh round of selling has been triggered by the price breaking the 1915(1) support at the European session. The price went to the day-low 1991 at the opening of the US session. Finally, the day ended at 1897, with a USD 33 drop.
The bottoming out signal has yet to appear on the 1-hour chart where the price is still under the selling pressure by the S-T resistance line(3). As mentioned yesterday, we can expect the price to trade between the range of 1894-1915(2) in S-T after it clears all the support of 1915.
Since the price pulled back from 1998 last week, a double-top pattern(4) formed on the daily chart, and gold has already broken the neckline, 1920, yesterday. Unless the price can bounce back to above 1920 in the next few trading days, an M-T fall should begin on the daily chart.
S-T Resistances:
1920
1915
1908-10
Market price: 1903
S-T Supports:
1900
1894
1890-88
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The bottoming out signal has yet to appear on the 1-hour chart where the price is still under the selling pressure by the S-T resistance line(3). As mentioned yesterday, we can expect the price to trade between the range of 1894-1915(2) in S-T after it clears all the support of 1915.
Since the price pulled back from 1998 last week, a double-top pattern(4) formed on the daily chart, and gold has already broken the neckline, 1920, yesterday. Unless the price can bounce back to above 1920 in the next few trading days, an M-T fall should begin on the daily chart.
S-T Resistances:
1920
1915
1908-10
Market price: 1903
S-T Supports:
1900
1894
1890-88
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
