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Gold Trend 29/03

Gold fell more than 1% yesterday. The market opened at 1955 and the selling pressure was quite strong back from the weekend. The price broke the critical 1950(1) support early in the Asian session and soon cleared all the buying support at the 1941-43(2) zone. It touched the day low 1916 before the day ending at 1922, dropping USD 32.

An S-T resistance line(4) has been formed in the 1-hour chart in the past 24 hours. At this point, if the pice can escape the current downtrend, breaking out from the selling of trendline(4) in the next 12 hours, it will be able to stay within the horizontal range of 1915-50(3) for the next at least 24-48 hours. Otherwise, the trendline(4) will lead the price lower, breaking the critical support of 1915(5) and further toward 1900.

The selling is strong in the daily chart, where the fall yesterday is one of the deepest 1-day drop in the past 2 week. A reversal has yet to appear, so we can expect the price will carry the selling momentum from yesterday and consolidate further in early sessions, testing the support of 1915. Technically, if the price fails to defend the 1920(7) support at the end of the day, the price will drop further toward 1894 or further down to 1880 before Friday this week.

S-T Resistances:
1950
1940-41
1930

Market price: 1922

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. 


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