Gold cleared the key resistance level of 2050(1) last Friday, triggering a new round of buying and retesting the high @ 2070. However, the price quickly retreated before the market closed. The session ended at 2052, above the key level of 2050 before the holiday weekend.
1-hour chart – After breaking through the level of 2050(1) last week, the upward trend in gold has accelerated, transitioning from a relatively stable upward channel(2) to a faster pace in (2.1). In order for gold to sustain the current upward trend, the price must surpass the key 2070 resistance in the next 24 hours; otherwise, the price may escape from the upward(2.1) trend and enter a sideways pattern between 2050-70(3). Let’s patiently wait for signals to appear, as capturing the trend should not be too difficult.
Daily chart – The selling pressure(4) built up by the rejection of 2070 before the holiday has been absorbed by yesterday’s buying orders, as indicated by the high closing prices (4.1) above 2060. A signal of a market top has yet to appear, so the upward movement should continue to dominate the daily chart. However, expect strong resistance at 2070-72, it’s better not to be too aggressive until it clears this resistance.
|
S-T ressitance 3 |
2080 |
|
S-T ressitance 2 |
2075 |
|
S-T ressitance 1 |
2070-72 |
|
Market price |
2064 |
|
S-T support 1 |
2060 |
|
S-T support 2 |
2055 |
|
S-T support 3 |
2050 |
P. To
Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.
