Gold fell another USD 35 on Monday. Early in the Asian session with extra thin volume from the Japanese & Singaporean market holiday, the price has broken the 1760-50(1) support. Carried the selling momentum from the previous trading day, the price has gone to as low as 1650. It has rebounded quickly, the price has traded between 1725-1750 during the European and US session. The day closed at 1729, with over USD 100 daily range.
The trading range should maintain between 1725-1750 for today. If the price breaks the support at 1725, it should once again touch 1700. As mentioned yesterday, the key resistance is now sitting at 1750-60(2), and the downtrend will not finish until it is able to break 1760 and the resistance line(3).
Although the price has rebounded quickly yesterday created a long bottom wick(5), a quick rebound in this condition may not consider as a reversal signal from experience. The M-T trend stays weak as gold has broken the key support line(4) on the daily chart. It may touch again 1700 if the price break the 1725-30 support.
From a longer-term perspective, gold has broken the M-T support line(4). The triangle pattern is completed and the price will now enter a structure of horizontal range(7).
S-T Resistances:
1755
1750-52
1738-40
Market price: 1735
S-T Supports:
1730
1725
1720
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The trading range should maintain between 1725-1750 for today. If the price breaks the support at 1725, it should once again touch 1700. As mentioned yesterday, the key resistance is now sitting at 1750-60(2), and the downtrend will not finish until it is able to break 1760 and the resistance line(3).
Although the price has rebounded quickly yesterday created a long bottom wick(5), a quick rebound in this condition may not consider as a reversal signal from experience. The M-T trend stays weak as gold has broken the key support line(4) on the daily chart. It may touch again 1700 if the price break the 1725-30 support.
From a longer-term perspective, gold has broken the M-T support line(4). The triangle pattern is completed and the price will now enter a structure of horizontal range(7).
S-T Resistances:
1755
1750-52
1738-40
Market price: 1735
S-T Supports:
1730
1725
1720
If you like our analysis, please give our team a thumbs up. Feel free to leave a comment, let us know what you think!
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