Gold eased from the 8-month high yesterday. The market opened near day high at 1908, and the price has been rejected by the key resistance(1) at 1908-10 during the Asian session. Selling began at the European session, and the price has traded between 1896-1906 thereafter. The day ended at 1898, below the 1900 level.
Selling pressure remains heavy above 1900, so fart the price hasn't been able to trade above 1900 for too long. Expect the price to stay range-bound between 1891-1910(3) in the early sessions. If the price breaks the S-T support line(2), expect it to consolidate toward 1883(4).
The bullish signal(4) that was mentioned yesterday was neutralized by the market with the long wick(4.1). 1900-08 resistance zone is still valid, 1887-1900(5) should be the trading range for today on the daiy chart. From a pure chart pattern & technically analysis perspective, it should be perfect timing to deploy an M-T short-selling strategy above 1900 after the reversal yesterday along with the uptrend channel (6). However, the market is highly influenced by the news from Ukraine lately, make sure a tight stop loss is in place.
S-T Resistances:
1908
1900
1897
Market price: 1896
S-T Supports:
1892
1888
1880-83
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.
