The spot gold market was relatively quiet yesterday, the price has been trading within 1736-1742 for the majority of the day. At the US session opening, the price dropped shortly to 1729 but quickly rebounded back to 1742. The ended at 1736.
Since the price escaped the upward support line(1), the price has entered the horizontal range of 1736-45. If the price breaks the 1736 support, the range will be widened to 1720-45.
Still awaiting the breakthrough on the daily chart. Once again as mentioned before, if the price break the upper resistance neckline at 1750 in the next 2 weeks, the double-bottom pattern will finally be formed, the target can be set at 1820; on the other hand, if the price can't stand above 1720, gold will enter a horizontal range-bound between 1680-1750.
S-T Resistances: 1750 1745 1740-42
Market Price: 1737
S-T Supports: 1736 1730-28 1722-20
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@Roopesh72, It really depends on the time frame that u r looking at. From a long-term perspective, the price is maintaining within a downtrend pattern. However, at this moment, the price is near the 2-months high of 1745-50, it needs to pass this resistance zone before it can go further up. If it clears 1750, it should be another USD 60-70 up; otherwise, the price is due for a consolidation.
Twice in the past 2 months, the price has not been able to stay below 1695 for more than 24 hours, buying underneath 1695 is quite strong. An L-T bear entry may need to be patient.