Gold Trend 14/07

Gold rallied from a renewed 9-month low yesterday. The day began below 1730 at 1725, and the price stayed between 1720-30 before the US session throughout the day. Once the US released its inflation figures, the price dropped to the day-low at 1706 but buying quickly entered the market. The day ended at 1734, with the day-high reaching 1743.


Althought gold touched a new 9-month low, the gradual downward slope on the 1-hour chart that has been trending in the past few trading days came to an end after the rebound yesterday. The buying above 1740 is still relatively weak; we can expect the price to be bounded by 1720-40 until the price can stand above 1740 comfortably to kick start the next uptrend.


The first reversal signal finally appeared after the price touched the bottom of the downtrend channel(4) yesterday. The price defended the 1730-1800(3) range yesterday. For gold to start a decent rebound, it must close above 1740 on the daily chart in the next few trading days.



S-T Resistances:

1755
1750

1740

Market price: 1731

S-T Supports:

1730

1720

1712-15


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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