Gold Trend 08/06

Gold gained slightly yesterday. In line with our expectation, the price had traded within the triangle pattern(1) throughout the day, with the price reached day-high 1900 breaking the resistance line(2) at day end. As the price has escaped the triangular structure(1), the trading zone for today should shift to 1895-1915(4.1). Notice, a new S-T support line(3) has formed in the past 48 hours. However, the price movement was tight in the gold market limiting the gain, if the price cannot climb above 1900 in the coming European session, the price will move further away from the upward trendline(3). The key support is now at 1895, the range will shift back to 1880-1895(4.2) if the price fall below 1895 today.


Buying is once again hesitating to enter the market while the price trades near 1900. The price is once again back to the range 1890-1910(4) on the daily chart, S-T is now supporting at the 5 days MA 1892.

S-T Resistances:
1910-12
1908
1900

Market Price: 1896

S-T Supports:
1895
1890
1884

Please give us a thumbs up if you like our ideas. Leave us a comment and share your thoughts.

P. To