The gold's surge continued yesterday, but the daily range was tight. The market opened near 1821, and the price has been consolidating toward day-low 1815 during the Asian & European sessions early in the trading day. Once gold entered the US session, the market became a bit more active, breaking the S-T resistance and the previous day-high 1822(1). The price has reached a new day-high at 1828 before the days ended at 1825.
While the price approached the key resistance at 1828, the target that we have set 48 hours ago was reached yesterday. On the 1-hour chart, if the price can break out from 1828(2), the next upside target can be set at 1842. However, the market may need to take a few more time to clear all the selling orders around 1828, as the trading volume and fluctuations are relatively low in the last 24 hours. Before 1828(2) is breached, expect the price to be bounded by the 1815-28(4) range.
In the past 6 months, the resistance at 1830-35(5) on the daily chart is quite effective on the daily chart . Same as yesterday, a bearish reversal has yet to appear, but, unless the price can successfully clear the 1835(5) barrier, it may be a good time now to plan for some bearish actions.
S-T Resistances:
1835
1832
1828
Market price: 1827
S-T Supports:
1825
1820
1815
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.
