Gold rebounded from the bottom last Friday. The market opened near 1770, and the price had been trading between 1767-1775 throughout the trading day before the US session. After the US employment figures were released, the buying became stronger at the 1770 level(3). The price floated back upon 1780 soon and the day ended near 1783, up USD 15.

In the 1-hour chart, the rebound has begun since the price touched the bottom of the downtrend change(1) at 1761 last Thursday. The price has touched the top of the channel early in the Asian session and completed the rebound cycle. If the price can break the resistance of the downtrend channel in the coming 24 hours, expect the price to touch again 1793. The buying has been strong at 1770, the daily range should be able to maintain between 1770-93.

An S-T reversal signal(4) has appeared on the daily chart after the gold price closed above 1780 last Friday. The price should be able to touch the top of the 1770-95(5)range in the next 2 days.

S-T Resistances:

1792-94

1788

1778-80

Market price: 1778

S-T Supports:

1774

1768-70

1760

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.