S-T rebound approaching, target around 1950.
Gold made a new weekly low before the weekend, completing the downward cycle mentioned in our previous analysis. The price cleared the S-T resistance(1) on Thursday, triggering a round of buying toward 1965. The decline began by Friday's pre-US session; it had fallen below the 1950 support, and the price dropped further during the US session, touched a new weekly low at 1935, and closed the week at 1938, down $53.
1-hour chart - The downward momentum has accelerated once again, and the downward channel needs to be adjusted again from (2.1) to (2.2). After a flash dip to 1928 at the Asian session opening, some short covering seems to control the market. Expect the price to be bound between 1930-1955(3) in early trading this week.
Daily chart - Gold seems to have completed its initial correction from 2004, and the 50-day MA(4) should provide temporary support. The daily chart suggests a trading range between 1930-2003(5) for now. The key turning point is expected to occur with the release of US CPI figures on Tuesday.
S-T Resistances:
1950-55
1945
1940
Market price: 1939
S-T Supports:
1930-32
1927
1920
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Gold made a new weekly low before the weekend, completing the downward cycle mentioned in our previous analysis. The price cleared the S-T resistance(1) on Thursday, triggering a round of buying toward 1965. The decline began by Friday's pre-US session; it had fallen below the 1950 support, and the price dropped further during the US session, touched a new weekly low at 1935, and closed the week at 1938, down $53.
1-hour chart - The downward momentum has accelerated once again, and the downward channel needs to be adjusted again from (2.1) to (2.2). After a flash dip to 1928 at the Asian session opening, some short covering seems to control the market. Expect the price to be bound between 1930-1955(3) in early trading this week.
Daily chart - Gold seems to have completed its initial correction from 2004, and the 50-day MA(4) should provide temporary support. The daily chart suggests a trading range between 1930-2003(5) for now. The key turning point is expected to occur with the release of US CPI figures on Tuesday.
S-T Resistances:
1950-55
1945
1940
Market price: 1939
S-T Supports:
1930-32
1927
1920
If you like my work, kindly give our team a thumbs up 👍.
Feel free to leave a comment; share your thoughts 🤟.
P. To
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