Gold was steady yesterday. The price has opened near 1728 in the early Asian session, and its drop began right after it has touched the day-high near 1738. Although the price has broken the support at 1725 and gone to as low as 1716 at the US session, the day ended near 1729, basically unchanged from the day before.
Overall the movement was in line with our expectation yesterday, with the price bounded within 1725-50. A false breakout at the US session yesterday has widened the daily range from 1725-50 to 1720-50(1) for today. An S-T uptrend support line(2) has formed in the past 24 hrs. If the price can break yesterday's high of 1738, most likely it will be able to reach the top of the range again. Notice, the breaking of a resistance line(3) will still be the reversal signal for the current downtrend.
Gold is currently supported by the 1725-30(4) zone on the daily chart. And the range for today can be expected to trade between 1716-50(5). Once again, it will be a sign of selling restarting if the daily closing price is below 1725.
S-T Resistances:
1755
1750-52
1738-40
Market price: 1733
S-T Supports:
1730
1725
1720
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Overall the movement was in line with our expectation yesterday, with the price bounded within 1725-50. A false breakout at the US session yesterday has widened the daily range from 1725-50 to 1720-50(1) for today. An S-T uptrend support line(2) has formed in the past 24 hrs. If the price can break yesterday's high of 1738, most likely it will be able to reach the top of the range again. Notice, the breaking of a resistance line(3) will still be the reversal signal for the current downtrend.
Gold is currently supported by the 1725-30(4) zone on the daily chart. And the range for today can be expected to trade between 1716-50(5). Once again, it will be a sign of selling restarting if the daily closing price is below 1725.
S-T Resistances:
1755
1750-52
1738-40
Market price: 1733
S-T Supports:
1730
1725
1720
If you like our analysis, please give our team a thumbs up. Feel free to leave a comment, let us know what you think!
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