Gold tested the 1880 supported for the second time in 2 days last Friday. Since the market opened at 1906, the price kept moving higher until it reached day-high 1921. The price has slipped after that; it touched 1882 at the US session, with the day ending at 1888, down by USD15.
Gold escaped the selling trendline(1) at the end of the US session last Friday; the downtrend originated from 1974 is now officially completed, and it's now entering a term of a sideways market with 1880-1930(3) as the range. Back from the weekend, a vital bullish sign has occurred, with the market having a gap up opening of nearly USD 20. Currently, the gold price is under pressure from trendline(2) while it is trying to recover the gap(4). Buying support seems strong below 1906; if the price breakout from the resistance line(2), the price will reach again 1920-30. Nonetheless, the price should be range-bound in 1883-1930, where the volatility is going back to the average level.
The uptrend channel(5) in the daily chart is still valid. But notice, the daily closing price may determine the movement for the coming few days... If the price closes below 1908(6) today, it will resume its position back to 1880-1908(7), continuing its range-bound pattern; on the other hand, if the price clears the resistance zone of 1900-08(6), the uptrend will resume and once again toward the resistance of the uptrend channel(5).
S-T Resistances:
1920
1915
1910
Market price: 1908
S-T Supports:
1903-00
1893
1888
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.
