Gold renewed the 2-month high yesterday, but the selling pressure was intense. The day began at 1771; the price was bounded in a tight range between 1766-74 in early trading. It tried to clear the resistance at 1780, touching the day-high at 1786 at the US session opening. The day ended at 1778, up by USD 7.
After three attempts(2) yesterday, gold failed to clear the selling resistance above 1780. A horizontal range(3) has formed on the 1-hour chart. For the uptrend channel to stay in effect, the price must stay above 1770 in the European session and later jump above 1780 in the US session. If the price fails to do so, it will signal the bullish momentum slowing down, leading an S-T to consolidate toward 1750 in the next 24-48 hours.
It will be the first sign of the trend reversing if the price close below 1771. Also, pay close attention to the 5-day MA; if this support clears, a consolidation toward 1730 may happen.
S-T Resistances:
1785-87
1780
1775
Market price: 1771
S-T Supports:
1765
1760
1755
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After three attempts(2) yesterday, gold failed to clear the selling resistance above 1780. A horizontal range(3) has formed on the 1-hour chart. For the uptrend channel to stay in effect, the price must stay above 1770 in the European session and later jump above 1780 in the US session. If the price fails to do so, it will signal the bullish momentum slowing down, leading an S-T to consolidate toward 1750 in the next 24-48 hours.
It will be the first sign of the trend reversing if the price close below 1771. Also, pay close attention to the 5-day MA; if this support clears, a consolidation toward 1730 may happen.
S-T Resistances:
1785-87
1780
1775
Market price: 1771
S-T Supports:
1765
1760
1755
If you like our work, kindly give our team a thumbs up. Feel free to leave a comment; let us know what you think!
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