Gold Trend 19/04 - 23/04 (Review daily)

Gold surged high last Friday. The price was opened at 1763, after an S-T retracement toward 1760 at the Asian session, the price has climbed all the way to 1783 at the US session opening. The market ended at 1775, up by USD 12.

Gold is maintaining its course within the uptrend channel(1) in the 1-hr chart, showing the overall momentum is still running up. However, resistance is relatively strong above 1780, that twice the price was rejected by 1783 in the past 24 trading hours. An S-T reversal signal(2) has appeared along with the price escaping the S-T support line(3). If the price breaks the support of 1775, an S-T consolidation toward 1768 is highly possible.

After gold broke the neckline of the double-bottom pattern, the M-T upside target of 1840 has not been changed. While the price is currently testing the M-T resistance line(4) on the daily chart, 1775 will be the key support to trigger a technical pull-back. If the price can NOT stand above 1775 in the next 24 hours, the technical pull-back from the breaking of the double-bottom neckline will occur. A consolidation toward 1760-65 will begin before the price goes further up.

S-T Resistances:
1795
1790
1780-83

Market Price: 1777

S-T Supports:
1775
1768-70
1760

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Comment:

Gold eased off 2-months high yesterday, It was bounded between 1775-1781 early in the Asian session, and hit the 2-months high 1790 in the European session. The price began to fall thereafter, touching day-low 1765 with the day ended at 1770.

In M-T, Gold is still trading within the uptrend channel(1). However, the price has escaped the S-T support line(2), the uplifting momentum from 1736 is now officially completed. After the price broke the support 1775(3) yesterday, the market will now enter an S-T period of 1765-1775 range-bound, and the range may be widened to 1760-1783 in the next 48 hours.

Gold is now trading under the M-T resistance line(4). While the price has been rejected by 1780 in the past 2 days, a reversal signal(5) is currently forming on the daily chart. As mentioned yesterday, a technical pull-back toward 1760-50 is due after the break of the double bottom's neckline last week.

S-T Resistances:
1780
1775
1770

Market Price: 1769

S-T Supports:
1767
1762-60
1755

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Comment:

The gold market was relatively slow yesterday with the price fluctuating within USD 17. It was trading between 1765-75 early during the Asian & European sessions, with the break of 1775(1) happened in the US session. The day ended at 1778.

The price hasn't changed much in the past 24 hours on the 1-hr chart. Before it breaks the resistance of 1783, the price should remain in the 1765-1783 zone.

Technically, the day-low 1762(2) yesterday on the daily chart can be classified as the pullback of the double-bottom breakout. While the pullback is now out-of-the-way, the upward movement is ready to resume. It was the first time in 2 months yesterday that the gold market closed above 1775(3), a sign of buying momentum accumulating. On the other hand, it is still under the resistance of (4), combining with the fact that gold is moving in tight daily ranges lately, it may take at least 2-3 days before the next major movement.

S-T Resistances:
1795
1790
1783

Market Price: 1781

S=T Supports:
1780
1775
1770

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Comment:

Gold gained USD 17 yesterday, now approaching $1800. The market opened at the day-low near 1775 level. The first attempt toward 1790 was failed early in the Asian session, and it broke the 1790(1) resistance at its second trial in the US session. The price then went all the way to the day-high near 1797. The day ended at 1893.

An S-T support line(2) has been formed in the last 48 hours on the 1-hr chart. The buying momentum will continue to push the price toward the upper resistance of the uptrend channel(3) as long as the price runs above this support line(2)

Gold broke the M-T resistance line(4) on the daily chart yesterday, showing a strong sign of buying. Unless a clear reservseal signal appears, the M-T trend remains bullish. Need to pay close attention on any rapid consolidation in the coming 48 hours while the daily market range remains tight. The next resistances are now the 50 days MA(5) and 1809.

S-T Resistances:
1804
1797-1800
1793

Market Price: 1791

S-T Supports:
1790-88
1783
1780

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Comment:

Gold was not able to stay above 1790 yesterday. Carrying the uplifting momentum from the day before, the gold price hit the previous high of 1797 early in the Asian session. Since then, the price has kept rolling lower, broke the S-T support line(1) in the European session, and fell all the way to day-low 1775. The day ended at 1783.

The upward momentum winded up on the daily chart yesterday as the price broke the S-T support line(1). In the past 24 hours, the buying above 1790 is not strong enough to keep the price near the 2 months high level. While the price is now trading below 1790, it may take days for the market to accumulate momentum to break the 1797-1800 resistance. 1775-1790 may be the range-bound for today.

The uptrend may slow down for now as the price has not been able to break the previous high of 1797 and closed below 1790 yesterday. A reversal signal has yet to be verified. In order to confirm a bearish reversal on the daily chart, the gold needs to close below 1778 in the next 24 hours. Target 1760-65 if a reversal is established; otherwise, 1775-1790 should be the range for now.

S-T Resistances:
1800-04
1793-97
1790

Market price: 1787

S-T Resistance:
1780
1775
1770

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