Gold Trend 08/12

Gold inched higher yesterday. The price had traded between 1777-1784 throughout the Asian/European session. At the opening of the US session, the price springboarded to day-low at 1771 then started to jump high. The price reached the day-high at 1787, with the day ending at 1783 up by USD 5.

The downtrend (1) originated from Nov. 26 is now ended by the price that broke out from the downtrend channel(1) yesterday. An uptrend channel(2) has newly been formed in the past 24 hours. But one thing worth noticing is that the upward momentum is eventually slowing down, from the previous trendline(2.1) to the current trendline (2). 1792(3) is the key resistance for S-T. 1780-1800(4) should be the trading range for the next 48 trading hours.


The reversal signal(5) is still valid. As the price cleared the selling resistance at 1787, gold is now entering a pattern of horizontal 1770-1795(6) range-bound on the daily chart. The daily closing price above 1795 will be the first sign of the pattern turning upward.

S-T Resistances:
1800
1795
1792-93

Market price: 1790

S-T Supports:
1787
1780-82
1777

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