Gold gained further yesterday. The price was under pressure by the 250 days MA(1833) early in the Asian & European sessions after the day began at near 1832. The price consolidated toward 1814 before the US session, and the buying started to kick in once the US session became active. The price cleared the previous 1840(1) and surged to the day-high 1857 before the day’s end, gaining USD 24.
The S-T trend has shifted upward after gold escaped the range of 1808-40(1). The upside target of 1860 we set yesterday is completed, and the price is now back to last week’s range of 1830-70. While the momentum is heading up, expect the price to touch the top of the range around 1865-70 again, with the price support at 1840 in S-T.
A double-bottom pattern(4) is developing after the price jumped back upon the 250 days MA(3) on the daily chart. Expect the price to approach the downward trendline(5) in the next few trading days. If the price can clear the selling resistance at the trendline(5) and 1870(the neckline of the double-bottom pattern), it should be able to touch 1920-40 to the upside.
S-T Resistances:
1865
1860
1850
Market price: 1843
S-T Supports:
1840
1835-37
1830
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