GOLD On The Brink: A Technical Analysis

Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.

 

Since its failure to equal the 1919.00s high, gold has been on a downward spiral which brought it as low as 1522.50s for a test of the weekly trendline. Since then, there has been a bounce off the trendline into 1630.00s, where it is currently threatening to form double tops on the 4-hour, below the critical 1640.00 resistance. As I am writing this,it is trading just above 1600.00 shelf of support, which, if breached, in my opinion will open the way for a test of 1590.00, followed by 1540.00 trendline support. I must stress at this point, that this is strictly my own  technical analysis viewpoint.

 

Below the daily/weekly trendline at 1540.00, is the 1480.00 lows, which should be the next target area for shorts. Depending on momentum, and follow-through at that point, there is the potential (remote though it might seem) for 1426.00 to also get tested.

 

Thanks for reading, and I encourage you to share your own views as well.

 

I wish you successful trading.

 

 

 Other useful blogs:

Forex Crunch: Scalper Protection For Forex Brokers Announced…

The GeekKnows– Daily Commentary on Eurusd

 

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  • Thanks for your comment, Tunjiwahab2000. The bullish bias has indeed remained intact, as it recovered and is supported above 1641.00.