Gold rallied between 1725-45 yesterday. The price was rejected by 1736 early in the Asian session, broke the support of the S-T uptrend channel(1) and went all the way down to 1725. Around the time of US session opening, gold started the rebound. It broke the resistance of 1736(2) and hit the high of 1745, but selling momentum can't carried on. Gold dropped back to day low 1722 and ended the day @ 1726.
As long as the gold is standing above the support level of 1720-22, the range-bound structure of 1720-45 will remain in place.
Although the price is maintaining it paths within the range of 1720-50 on the daily chart, a downward trend line(3) has been pushing the closing price lower & lower in the past few days. Unless the closing price of gold crosses this downward trend line(3) in the next 24-48 hours, the price may escape the range of 1720-50 & starting a new downward pattern.
S-T Resistances:
1740-42
1735
1728-30
Market Price: 1725
S-T Supports:
1725
1720-22
1715
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As long as the gold is standing above the support level of 1720-22, the range-bound structure of 1720-45 will remain in place.
Although the price is maintaining it paths within the range of 1720-50 on the daily chart, a downward trend line(3) has been pushing the closing price lower & lower in the past few days. Unless the closing price of gold crosses this downward trend line(3) in the next 24-48 hours, the price may escape the range of 1720-50 & starting a new downward pattern.
S-T Resistances:
1740-42
1735
1728-30
Market Price: 1725
S-T Supports:
1725
1720-22
1715
Please give us a thumbs up if you like our ideas. Leave us a comment and share your thoughts.
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