Selling momentum continued yesterday from the breaking of 1720 the day before. The price crossed its pervious day low 1705 and the key support 1700 in the Asian and European session(1), hit the day low 1678 at the US market opening. Ended the day at 1685 with a 26 dollars day drop.
As mentioned yesterday and its the same today, gold has yet to find a reversal signal on the hourly chart. Early during the Asian session, the price has been testing the support zone 1678-80. If the price breach this area, target can be set at 1665-60. A S-T resistance line(2) was formed in the past 24 hours, breaking this line will be the first signal of a S-T rebound.
In the big picture, gold is currently trading in a M-T downtrend(3) on the daily chart, while the price broke the L-T support lines (4.1)/(4.2) yesterday showing strong sign of bear. As its touching 1680 at the moment, the next 24 hours will be critical ! If today the price can close above 1680 level, the selling momentum from the breaking of (4)s will most likely shift to a range-bound structure(5); otherwise, aim for a profit target 1660 or below.
S-T Resistances:
1695-6
1688-90
1680
Market Price: 1679
S-T Supports:
1678
1670
1665-60
Please give us a thumbs up if you like our ideas. Leave us a comment and share your thoughts.
As mentioned yesterday and its the same today, gold has yet to find a reversal signal on the hourly chart. Early during the Asian session, the price has been testing the support zone 1678-80. If the price breach this area, target can be set at 1665-60. A S-T resistance line(2) was formed in the past 24 hours, breaking this line will be the first signal of a S-T rebound.
In the big picture, gold is currently trading in a M-T downtrend(3) on the daily chart, while the price broke the L-T support lines (4.1)/(4.2) yesterday showing strong sign of bear. As its touching 1680 at the moment, the next 24 hours will be critical ! If today the price can close above 1680 level, the selling momentum from the breaking of (4)s will most likely shift to a range-bound structure(5); otherwise, aim for a profit target 1660 or below.
S-T Resistances:
1695-6
1688-90
1680
Market Price: 1679
S-T Supports:
1678
1670
1665-60
Please give us a thumbs up if you like our ideas. Leave us a comment and share your thoughts.
P. To @ 1uptick Analytic
