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Gold Trend 10/05

Gold dropped almost USD 30 yesterday. The market opened near day-high at 1883. The selling resumed once the price broke out from the support trendline(1) in the Asian session. After a brief rebound at the US session, the price broke the 1860 support and ended the day at 1853.

Gold has been under the selling pressure from the downward trendline(2) on the 1-hour chart. Within the next 24 hours, the price must climb above Trendline(2) in order to stay within the 1850-90 range-bound; otherwise, a new round of selling will begin after it clears the support at 1850.

It is the first time in 2 months that the price closed below 1860 on the daily chart , another sign of gold getting weaker. Still waiting for a bottoming out signal to occur, expect the bear to remain dominant in the market. A new round of selling will happen if the price break the 1850(4) support.

S-T Resistances:
1874
1870
1865

Market price: 1863

S-T Supports:
1860
1855
1850


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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