Gold stayed near the 8-month high last Friday. The price has hit the 8-month high very early in the Asian session at 1902 after the market opened at 1898. The price was basically bounded by the 1890-96 range throughout the Asian and European sessions. Buying resumed at the US session, with the day ending near 1897.
The upward momentum has slowed down after the price escaped the S-T support line(1) last Friday on the 1-hour chart, and the S-T pattern has shifted horizontally to the range 1886-1900(3). Although the price has touched a new high,1908, early in the Asian session today, the selling resistance above 1900 has yet to clear. It will be a sign of the price preparing to break the upside 1908 if the price can close above 1900. Trendline (2) is the support to the downside for now.
Since gold broke out from the triangle pattern(4), it has moved higher along within the uptrend channel(5). The selling zone at 1900-08(7) had rejected the price this morning. Before the price clears all the resistance above 1900, the S-T consolidation should occur between 1870-1900(6).
S-T Resistances:
1908
1900
1895
Market price: 1892
S-T Supports:
1888
1880-83
1876
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.
