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Gold Trend 11/05

Gold cleared the critical support at 1850 yesterday. The market opened at 1853; the price rebounded to the day-high at 1865 during the European session. Selling resumed once the market entered the US session, and the price has gone all the way to the day-low at 1835 after it crossed the key support of 1850. The day finally ended at 1837, down by USD 15.

Gold failed to break out from the downward trendline(2) yesterday, leading the price to slide below 1850. The selling momentum wasn't strong as it broke through the critical support of 1850; an S-T rebound may happen in the next 24-48 hours. While the price is now supporting at 1835, continue to keep an eye on the trendline(2). If the price escapes the selling pressure from the trendline(2), expect the price to rebound toward 1890, the upper limit of a wider downtrend channel(3). On the other hand, if the selling continues, the next downside target will be around the 1825-20 level.

Expect the selling to continue after gold broke the key 1850 support on the daily chart. The target can be set at 1800 if the price clears the current 250 days of MA support.

S-T Resistances:

Market price: 1837

S-T Supports:

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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