Gold traded to the highest level in 11 days yesterday and buyers have emerged during the Asian session. Although there is ample scope for further gains, we look for sellers to emerge at our bespoke resistance zone of $1932-1933.
Using projection analysis, we look for a complex but sustained move to the downside. The first barrier is located at $1,912, where we expect mild profit-taking/correction.
We look for the commodity to eventually stall and reverse at $1886, effectively making a ‘double bottom’ formation on the daily chart.
Conclusion: there is scope for more buying at the open, but rallies should be capped by $1933-$1932. We look for a reversal in trend.
Resistance: $1,932-33 (bespoke), $1,932 (supply zone), $1,936 (50%)
Support: $1912 (bespoke), $1911 (project support), $1886 (completion of the cycle)
PoC (Point of Control) Open – $1,915 (August 29)
Using projection analysis, we look for a complex but sustained move to the downside. The first barrier is located at $1,912, where we expect mild profit-taking/correction.
We look for the commodity to eventually stall and reverse at $1886, effectively making a ‘double bottom’ formation on the daily chart.
Conclusion: there is scope for more buying at the open, but rallies should be capped by $1933-$1932. We look for a reversal in trend.
Resistance: $1,932-33 (bespoke), $1,932 (supply zone), $1,936 (50%)
Support: $1912 (bespoke), $1911 (project support), $1886 (completion of the cycle)
PoC (Point of Control) Open – $1,915 (August 29)