The gold price is listening to the simple moving averages of the hourly chart.
Namely, the 200-hour SMA is providing support and keeping the rate from falling lower. In the meantime the 55 and 100-hour SMAs are providing resistance.
In general, the commodity price should get squeezed in between the simple moving averages. The 200-hour SMA will push higher until it will meet with the 55-hour SMA. At that moment or even before that a break out should occur. A break out could go both ways - up or down.
Namely, the 200-hour SMA is providing support and keeping the rate from falling lower. In the meantime the 55 and 100-hour SMAs are providing resistance.
In general, the commodity price should get squeezed in between the simple moving averages. The 200-hour SMA will push higher until it will meet with the 55-hour SMA. At that moment or even before that a break out should occur. A break out could go both ways - up or down.
Comment:
On Thursday the charts of the yellow metal were reviewed and trend lines were added. Meanwhile, the rate had finally properly declined below the resistance of the hourly simple moving averages.
Zoom out to see that the metal is trading in a rare large scale ascending wedge pattern. The rate's surge during the morning hours of Thursday. The surge was set to meet with the resistance of the 55 and 100-hour SMAs, which pushed the rate lower on Wednesday.
Watch the meeting of the technical levels and the rate. It will either result in another test of the supporting trend line or a surge to the 200-hour SMA at 1,330.00.
Meanwhile, note that to properly see the trend lines one has to load the previous price information and candles. Initially seeing the interactive chart, the trend lines might be shifted downwards.
Zoom out to see that the metal is trading in a rare large scale ascending wedge pattern. The rate's surge during the morning hours of Thursday. The surge was set to meet with the resistance of the 55 and 100-hour SMAs, which pushed the rate lower on Wednesday.
Watch the meeting of the technical levels and the rate. It will either result in another test of the supporting trend line or a surge to the 200-hour SMA at 1,330.00.
Meanwhile, note that to properly see the trend lines one has to load the previous price information and candles. Initially seeing the interactive chart, the trend lines might be shifted downwards.
Comment:
The fundamental strength of the US Dollar has caused a drop of gold prices below the long term support line. By the middle of Friday's trading session on the hourly chart the metal had no support as low as 1,295.13.
Although, take into account that the 1,300.00 level will provide support. In general, there are two scenarios. First one is a simple continuation of the decline due to the lack of support.
On the other hand, such sharp moves like the one just experienced are often followed by a period of consolidation. Namely, the metal might trade sideways.
Meanwhile, take into account that the long term support line is show incorrectly on the hourly chart. First zoom out and that way load the previous price information. Then the line will have available exact reference points.
Although, take into account that the 1,300.00 level will provide support. In general, there are two scenarios. First one is a simple continuation of the decline due to the lack of support.
On the other hand, such sharp moves like the one just experienced are often followed by a period of consolidation. Namely, the metal might trade sideways.
Meanwhile, take into account that the long term support line is show incorrectly on the hourly chart. First zoom out and that way load the previous price information. Then the line will have available exact reference points.
Comment:
Gold continued to decline on Monday. It had reached below the 1,290.00 level. In general, the decline was expected to continue, as the metal faced no technical support as low as the 1,276.65 level.
Meanwhile, the decline was overextended. Due to that reason the price might first trade sideways to consolidate its level. In addition, the simple moving averages would then catch up.
Meanwhile, the decline was overextended. Due to that reason the price might first trade sideways to consolidate its level. In addition, the simple moving averages would then catch up.
A decline of the commodity is still expected, as the previous support levels have moved above the price and begun to provide resistance.
Meanwhile, take into account that round price levels are providing psychological support. For example the most recent small scale surge was caused by the support of the 1,324.00 level.