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Gold Trend 07/06

Gold continued to pull back yesterday. The price traded in a tight range between 1850-56 early in the Asian and European sessions. The drop began once the price reached the day-high near 1857 at the US session opening. The price touched a day-low at 1840, with the day ending at 1841, down by USD 10.

An S-T downward trendline(1) has formed since the price touched the 2-weeks high of 1874 last week. If the price clears the selling pressure from trendline(1), expect the price to rebound toward 1860 in the short run. Overall, gold is still maintaining its range between 1830-70(2) on the 1-hour chart, waiting for the next break.

The pattern on the daily chart hasn't changed much, where gold is still mainly trading within +/-15 of 1850 since May 19th. Before the next break, can continue to take advantage of the 1835-65 range. Expect the USD to get strong and lower the gold price before the US Fed. Meeting next week, The 250 days MA(4) remains the key support at the downside.

S-T Resistances:

Market price: 1843

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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