From the Asian to the US session, the gold price went one-way from 1736-1769 yesterday. The price opened at 1736. It has broken the triangle structure(1) and hit the first resistance at 1750. At the US session, buying momentum continued, breaking the resistance of 1750-55(2), and the gold price went all the way to the 6 weeks high of 1769. The market ended at 1763 yesterday.
Gold is currently running in an uptrend channel(3) on the 1-hour chart. After breaking the key resistance at 1760, buying momentum will continue in S-T. The price has already completed an S-T consolidation(4) early in the Asian session today, a bottom foundation has been built and the price should be able to go higher than yesterday's high today.
The overall gold market volume has gone down lately in the past 2 weeks (for reference > www.cmegroup.com/tra...otes_volume_voi.html) leading the daily range to shrink (bullion.z.com/en/research-center-gold/). In the past 2 weeks, the average daily fluctuation has reduced to merely USD 15.1. Under the current market condition, the gold price may need to take a longer time to reach the top of the uptrend channel(3).
After breaking the 'neckline' at 1760, the double bottom structure should finally be confirmed. If nothing changes in the fundamental aspects of the market, with a 1:1 ratio, the M-T price target should be near 1830-40, estimated time frame 4-5 weeks.
S-T Resistances:
1780
1775
1769-70
Market price: 1765
S-T Supports:
1760-63
1755
1750
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Gold is currently running in an uptrend channel(3) on the 1-hour chart. After breaking the key resistance at 1760, buying momentum will continue in S-T. The price has already completed an S-T consolidation(4) early in the Asian session today, a bottom foundation has been built and the price should be able to go higher than yesterday's high today.
The overall gold market volume has gone down lately in the past 2 weeks (for reference > www.cmegroup.com/tra...otes_volume_voi.html) leading the daily range to shrink (bullion.z.com/en/research-center-gold/). In the past 2 weeks, the average daily fluctuation has reduced to merely USD 15.1. Under the current market condition, the gold price may need to take a longer time to reach the top of the uptrend channel(3).
After breaking the 'neckline' at 1760, the double bottom structure should finally be confirmed. If nothing changes in the fundamental aspects of the market, with a 1:1 ratio, the M-T price target should be near 1830-40, estimated time frame 4-5 weeks.
S-T Resistances:
1780
1775
1769-70
Market price: 1765
S-T Supports:
1760-63
1755
1750
Please give us a thumbs up if you like our ideas. Leave us a comment and share your thoughts.
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