Gold broke out from the bottom yesterday. The price had begun its drop in between the Asian and European session after it broke the support at 1750. It touched the day-low 1727 at the US session opening, and the day ended near 1733.
Selling momentum began after the price has escaped the ST uptrend channel(1) yesterday. And the second round of selling has been triggered by the price broke out from this week's low 1740. Overall the trend is still trading within the downtrend channel(2) as we have been mentioning for a while now. As the price has gotten close to the bottom of the support, the downward momentum may have to slow down unless it can break clear from yesterday's low near 1727.
So far gold has experienced 4 major drops since the beginning of Sep. From the first drop of USD 52(6.1) to the third drop of USD 49(6.3), the drop will shrink to USD 27 (6.4) unless it can clear the support at 1730. If the price fails to break the support at 1730(7), the MT downtrend may have hit an ST bottom. Trendline(5) will be the key to the market shift.
S-T Resistances:
1755
1750
1743-45
Market price: 1740
S-T Supports:
1735
1729-30
1720
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Selling momentum began after the price has escaped the ST uptrend channel(1) yesterday. And the second round of selling has been triggered by the price broke out from this week's low 1740. Overall the trend is still trading within the downtrend channel(2) as we have been mentioning for a while now. As the price has gotten close to the bottom of the support, the downward momentum may have to slow down unless it can break clear from yesterday's low near 1727.
So far gold has experienced 4 major drops since the beginning of Sep. From the first drop of USD 52(6.1) to the third drop of USD 49(6.3), the drop will shrink to USD 27 (6.4) unless it can clear the support at 1730. If the price fails to break the support at 1730(7), the MT downtrend may have hit an ST bottom. Trendline(5) will be the key to the market shift.
S-T Resistances:
1755
1750
1743-45
Market price: 1740
S-T Supports:
1735
1729-30
1720
If you like our work, kindly give our team a thumbs up. Feel free to leave a comment, let us know what you think!
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