Gold Trend 20/09

Gold pulled back from the S-T rebound last Friday. The market had climbed to 1767 early in the Asian /European session away from the drop the day before. But selling had resumed while the market approaching the US session with the price quickly fell back to 1750. The day ended near 1754.

The price has been supported by 1750 late last week and the market attempted to break this support early in the Asian session today. However, it came back above 1750 quickly and breakout from the S-T resistance line(1) at the same time. The drop from last Thursday has temporarily been finished in the 1-hour chart by 1750 providing support and buffer for now. Since a high point(1767) and a low point(1741) have appeared in the market, expect the price to be traded within 1741-1767 in the next 24 hours.

The rebound(3.2) early in the Asian session today has pretty much absorbed the selling momentum(3.1) from the closing of last Friday on the daily chart. The closing price today holds the key to the trend for the coming few days. If the price can defend the support of 1750 today, the market will enter a period of consolidation and rebound(3.3), reference by "wave 2"(3.3) from the wave pattern mentioned last week, until the next breakout.

S-T Resistance:
1767
1760-63
1755

Market price: 1752

S-T Supports:
1750
1743-45
1738

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