For gold traders, its seem not a lot of change on this front. My recent analysis emphasized on the importance of a well-known support/resistance area, which is 1146.1/1147.3 (represented by the red horizontal line on the attached chart). Wednesday’s low which was only 4 pips above the top of this area was an indication of its importance, and therefore, it was not a surprise to see gold recover about 190 pips up from that low, and to see that we have ascending daily low for the past 4 days. Moreover, this area was just below the bottom of the daily channel we have been watching lately, but since this channel is a falling one, its bottom descended to meet this area today, they are almost exactly at the same level now.
So, the bottom of the channel, and the bottom of the support area, meet to give us our first support for today, at 1146.1. If this level breaks, we could very much see gold trading below November bottom 1130.0, in the near future. However, closer levels include 1153.6, 1146.1, 1140.5 & 1137.7.
Resistance starts at the falling trend line from Friday’s high, which is currently running at 1162.2. A break above this level is a good start, and if the price actually breaks above it, we could very much see a test of at least one of the micro term retracements which start at 1165.4, and include 1171.3, 1178.6, 1185.9 & 1191.8. Testing at least one of these levels will become highly expected if the price breaks above 1163.9, but breaking all of them is not probable at the moment. However, if the bulls can come back to life & break above all of these levels, then trading above March 5th short term top (1209.5) should be expected. Good Luck Guys..
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