Gold Trend 01/06

Gold hit near 2-week low yesterday. The price has been bouncing around the 1850 level after the market opened at 1855, early in the Asian session. The drop began once the price touched the day-high at 1857 during the European trading. I cleared the recent support of 1840 late in the US session and fell to the day-low near 1835. The day ended at 1837, down by USD16.

Gold is now testing the critical support of 1830(2) on the 1-hour chart. An S-T resistance line(3) has formed in the past 48 hours since the price touched 1864 on Monday. Expect the price to stay within the triangle pattern(4) in S-T. Until a new trending pattern forms, the 1830-65(2) sideway range will still be good on the 1-hour chart.


Gold closed below the 20 days MA and 1850 yesterday on the daily chart. The tr d seems to be turning weak for the moment. The price is currently supported at the 250 days MA (6) after the price escapes the range of 1840-70. If the price slide further below 1830, the next support zone will be near 1800-10(7).

S-T Resistances:
1847-50
1840
1835-37

Market price: 1833

S-T Supprots:
1830
1823-20
1815

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