Gold pulled back from the new weekly high yesterday. The trading day has opened near 1832, and the price has traded between 1831-35 throughout the early Asian and European sessions. The volatility has increased after the US released the inflation figures, the price first touched the day-low at 1821 and quickly rebounded to the new weekly high at 1841. The market ended up closing at 1826, down by USD 6.
The price has finally gotten close to our target 1843(2) after it cleared the key resistance at 1828 the day before. Althought the price broke out from 1835(1) yesterday, the buying was not strong enough to keep the price above 1835. The price is now resuming its position below 1828. The 1822-35(3) zone can be set as the preliminary strategy for the early Asian and European sessions. If the price broke the support at 1822, the downside target can be set at near 1810-15.
Gold failed to clear the resistance zone between 1830-35(4) on the daily chart yesterday. Since the price has touched the resistance line(5) and the day ended down, the reversal signal that we have been waiting for the two days finally appeared. The uptrend that originated from Jan. 31 is now officially completed. The downside target can now aim at the 20 days MA(6) near 1819.
S-T Resistances:
1835
1832
1828
Market price: 1826
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.
