Gold fell over USD 30 yesterday. The drop had started after it climbed to 1827 early in the Asian session. The price broke the S-T support line(1) at the European session and the fall accelerated after it had cleared another key support at 1810(2). Day-low touched 1792 and the day ended near 1793.
The upward momentum originated from Aug. 27 has officially finished after the price has broken the support line(1). For the moment, trendlines(4) can still be used as a movement reference on the 1-hour chart. The key supporting zone is now between 1790-93. In the next 24 hours, if the price can carry yesterday's downward momentum breaking the 1790 support, the first profit can be set near 1770.
After the gold price touched the top of the horizontal 1790-1835 range(5) last Friday, it began to consolidate yesterday. The selling pressure was quite strong with the price cleared last week's 1810(6) support and went all the way to the bottom of the range. The price is now wandering near 1797 close to the bottom of the 1790-1835 range(5). If the price carries the selling momentum from yesterday, the price may break out from this range, and the downside target can be set near 1775.
S-T Resistances:
1810
1805-7
1800
Market price: 1797
S-T Supports:
1793-90
1785
1780
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The upward momentum originated from Aug. 27 has officially finished after the price has broken the support line(1). For the moment, trendlines(4) can still be used as a movement reference on the 1-hour chart. The key supporting zone is now between 1790-93. In the next 24 hours, if the price can carry yesterday's downward momentum breaking the 1790 support, the first profit can be set near 1770.
After the gold price touched the top of the horizontal 1790-1835 range(5) last Friday, it began to consolidate yesterday. The selling pressure was quite strong with the price cleared last week's 1810(6) support and went all the way to the bottom of the range. The price is now wandering near 1797 close to the bottom of the 1790-1835 range(5). If the price carries the selling momentum from yesterday, the price may break out from this range, and the downside target can be set near 1775.
S-T Resistances:
1810
1805-7
1800
Market price: 1797
S-T Supports:
1793-90
1785
1780
If you like our work, please give our team a thumbs up. Feel free to leave a comment, let us know what you think!
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