Gold Trend 23/03

Gold pulled back from the top of the range yesterday. The day started at 1936; the price was traded in a tight range between 1931-36 early in the Asian session. Selling has begun since the price broke the 1930 support at the European session, and the drop has accelerated after it crossed the support trendline (1) at the US session. The day-low touched 1910 with the day ended at 1920, down by USD 14.

The buying support was quite strong yesterday as it was trading below 1915(2), and the pattern is very similar to the one that occurred on Monday(2.1), as an S-T reversal signal, only upsidedown. Expect the price to trade between 1915-30(3) in the early session. If the price breaks the 1930 resistance, the upside target will be near 1940.

The overall structure has changed much on the daily chart. The operating range remains in 1917-42 until the pattern alters.

S-T Resistances:
1950
1940
1930

Market price: 1922

S-T Supports:
1920
1915
1910

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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. 

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