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Gold Trend 20/04

Gold pulled back further yesterday. The market opened at 1977 on Tuesday. Carried the bearish momentum from the US session the day before, the price broke out from the supporting trend(1) early in the Asian session. The drop yesterday officially began at the US session after it reached the day-high at 1981. The selling has accelerated as it cleared all the support at 1960(2). The price dropped to the day-low at 1943, and the day ended at 1949, down by USD 29.

Gold has fallen as expected, but the selling was stronger than we anticipated yesterday. Althought the price is now supporting at last week's low of 1941-43, a clear sign of bottoming out is yet to appear. A new round of selling toward 1915-20 will be triggered if the price clears the buying support at 1940; until then, 1940-60 should be the range.

The selling signal(4) is still in effect as the price has yet to show a reversal signal on the daily chart. The 50 days MA(5) & 1920 should be the upcoming support to the downside.

S-T Resistances:
1970-74
1960
1950

Market price: 1942

S-T Supports:
1930
1920
1915


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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