Gold rallied from the one week-low yesterday. The market started at 1836; the price slowly sank toward the day-low 1828 throughout the Asian and European sessions. The rebound began once the US session became active, and the price jumped to the day-high near 1850, with the day ending at 1845.
Gold escaped the triangle pattern(1) yesterday; the downtrend that originated from 1864 is now officially completed. The buying momentum is accumulating on the 1-hour chart; once the price clears the resistance at 1850(3), it should be able to climb to the top of the range near 1865. In the next 24 hours, the range-bound trading of 1830-65(2) can be used as a preliminary strategy before the US releases its employment figures on Friday.
The pattern hasn’t changed much, where the 250 days MA(6) remains the critical support on the daily chart. The uptrend from May 16th (1786) is still valid on the daily chart. It will be the first sign of the upward movement restarting If the price breakout from the current resistance trendline(5). Meanwhile, 1840 & the 20 days MA supports the price in S-T.
S-T Resistances:
1865
1860
1850
Market price: 1845
S-T Supports:
1840
1835-37
1830
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.