Gold was rejected by 1950 again yesterday. The day began at 1943, and the price has traded between 1930-50(1) during the Asian & European sessions. The drop has started after the price broke the S-T support line(2) and the neckline of the mini-double top pattern(3) at the US session. The day-low has gone to as low as 1915, ending the day at 1928, down by USD16.
The uptrend remains on the hourly chart; however, the momentum has slowed down from the previous trendline(2) to a more gentle upward trendline(4). After the trading yesterday, the structure(6) needs to be adjusted to (6.1), and the upside target reset to 1960. Set the range of 1915-50 as the per-US session trading strategy. The price must stay above 1915 in the next 24 hours. If the price goes back to the previous range below 1915, the structure pattern of (6.1) will be revoked, the uptrend in the hourly chart will turn south.
The selling at 1950 has been strong so far; it seems like it will take a few more attempts if gold wants to jump higher. On the other hand, the closing price on the daiy chart will need to stay above 1920 in the next two trading days for gold to remain on its current uptrend.
S-T Resistances:
1950
1940
1930-33
Market price: 1925
S-T Supports:
1920
1915
1910-08
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.
