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Gold Trend 08/11

Gold jumped USD 26 last Friday. The market opened near day-low 1791 with the price traded between 1790-1799 throughout the day. Buying momentum has been initiated by the price breaking the 1800 resistance(2) 2 hours after the US employment figures. Day-high reached 1818 and the day ended at 1817, up by USD 26.

The volatility has increased since last Thursday on the 1 hours chart. Once the price escaped the downtrend channel(1) late on Thursday, buying has resumed. A narrow S-T uptrend channel has been formed in the last 48 trading hours, wait for this channel to be widened in the next 24 hours. Resistance at 1820 should be strong , the price should be bounded between 1807-20 until 1820 breaks.

The price has resumed its move toward the top of the 1720-1835(5) range after it broke out from the 250 days MA(4) on the daily chart. Key resistance is now at Trendline(6).

From an L-T(long-term) perspective, the price is once again approaching the downward resistance line(6), originating from Aug. 2020. If the price breaks out from the trendline(6), the price will end the downtrend then enter a period of range-bound between 1680-1910; otherwise, the price will continue downward.

S-T Resistances:
1830-33
1825
1820

Market price: 1819

S-T Supports:
1815
1809-10
1800


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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