Gold fell near USD 47 yesterday. The dropped was basically triggered by the Fed. meeting, from 1860 all the way to 1803 before the market ended at 1811.
The price was supported by the S-T support line(1) up to the Fed meeting. The S-T trend was a one-way down once the support(1) and the bottom of the downtrend channel(2) broke. A bottom near 1802 has formed yesterday before the market closing. The first round of rebounds has already completed in the Asian session at 1825 - 38.2 retracement(4). If the price stays above the current support level of 1820(3), the next rebound target will sit near the level of 1832(4) ; on the other hand, if the price cross the support of 1820. it may touch the low again.
As mentioned before, gold has entered a period of consolidation on the daily chart and it reached our target of 1826 yesterday. The trend will remain downward until a reversal signal occurs on the daily chart. The support sits at 1800-1803 for now.
The next few trading days will be key for the L-T trend development. Gold has escaped the L-T downtrend since it broke the resistance line(7). The price needs to go back upon line(7) in order to keep the L-T momentum upward (Scenario 1). However, if the price stays below line(7), it will turn out to be a false breakout then Scenario 2 will most likely be next.
S-T Resistances:
1840-44
1830-31
1825
Market Price: 1820
S-T Supports:
1815
1810
1803-05
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The price was supported by the S-T support line(1) up to the Fed meeting. The S-T trend was a one-way down once the support(1) and the bottom of the downtrend channel(2) broke. A bottom near 1802 has formed yesterday before the market closing. The first round of rebounds has already completed in the Asian session at 1825 - 38.2 retracement(4). If the price stays above the current support level of 1820(3), the next rebound target will sit near the level of 1832(4) ; on the other hand, if the price cross the support of 1820. it may touch the low again.
As mentioned before, gold has entered a period of consolidation on the daily chart and it reached our target of 1826 yesterday. The trend will remain downward until a reversal signal occurs on the daily chart. The support sits at 1800-1803 for now.
The next few trading days will be key for the L-T trend development. Gold has escaped the L-T downtrend since it broke the resistance line(7). The price needs to go back upon line(7) in order to keep the L-T momentum upward (Scenario 1). However, if the price stays below line(7), it will turn out to be a false breakout then Scenario 2 will most likely be next.
S-T Resistances:
1840-44
1830-31
1825
Market Price: 1820
S-T Supports:
1815
1810
1803-05
Please give us a thumbs up if you like our ideas. Leave us a comment and share your thoughts.
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