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Gold Trend 26/04

Gold dropped to a 2-month low yesterday. The day began at 1932, carrying the selling momentum from last Friday. A fresh round of selling has been triggered by the price breaking the 1915(1) support at the European session. The price went to the day-low 1991 at the opening of the US session. Finally, the day ended at 1897, with a USD 33 drop.

The bottoming out signal has yet to appear on the 1-hour chart where the price is still under the selling pressure by the S-T resistance line(3). As mentioned yesterday, we can expect the price to trade between the range of 1894-1915(2) in S-T after it clears all the support of 1915.

Since the price pulled back from 1998 last week, a double-top pattern(4) formed on the daily chart, and gold has already broken the neckline, 1920, yesterday. Unless the price can bounce back to above 1920 in the next few trading days, an M-T fall should begin on the daily chart.

S-T Resistances:
1920
1915
1908-10

Market price: 1903

S-T Supports:
1900
1894
1890-88


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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