Gold crossed the key resistance 1950 yesterday. The market opened at 1944, and it visited the day-low 1937 in the Asian session. The price has started to climb as trading enters the European session. The price crossed the key 1950 resistance(1) and finally reached the day-high 1966 at the US session. The day ended at 1957, up by USD 13.
Technical buying orders had been triggered to enter the market as the price broke out from the critical resistance 1950 yesterday; however, the buyings about 1960 aren't strong. Before the weekend, 1948-1966(2) should be the trading range. Meanwhile, a mini-double top pattern(2) has formed in the 1-hour chart. If the price crosses the 1957 neckline, the price should consolidate toward 1948 in S-T. On the other hand, later on in the US session, if the price can go above 1966, the upside target will be at 1975(4).
Gold had escaped the horizontal range of 1917-44(4) in the daily chart, technically 1:1 ratio, it should be able to reach 1971 to the upside.
S-T Resistances:
1971-74
1966
1960-62
Market price: 1957
S-T Supports:
1950
1940
1935
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.
