Gold rallied from the bottom of the uptrend channel yesterday. The price had been weakening after the market opened near 1792 early in the Asian session. The price had begun its rebound after it bottomed out at 1782 during the European session. The day-high had touched 1798, with the day ending at 1796 up by USD 4.

Buying orders started to enter the market after the price touched the bottom of the uptrend channel(1) yesterday. A mini-double bottom pattern(2) has formed yesterday and was completed early in the Asian session today. As mentioned yesterday, the resistance line(3) is still valid in S-T. Expect the price to maintain its path with 1788-1813(4), with 1800 as the middle barrier.

The gold is still running within the uptrend channel(6) on the daily chart. After the price touched the lows near 1780 in the last 2 trading days, a bottom-out signal has appeared(5). The 250 days MA(7) will be the key resistance for today.

S-T Resistances:

1810-13

1805

1800

Market price: 1798

S-T Supports:

1793

1788

1780

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.