SINGAPORE: Signals are mixed for spot gold, as its recovery from the Thursday low of $1,702.80 looks exceptionally strong.
A flat pattern from the Sept. 1 low of $1,687.60 was thought to have completed at the Thursday high of $1,728.09.
However, the strong rise from the same day low indicates the development of a double-bottom around $1,690, which is a trend reversal pattern.
A break above $1,729 could confirm this bottom pattern and a target of $1,765. It seems that gold is rising towards $1,729.
Gold slips as dollar holds steady ahead of Powell speech, ECB rate decision
A break below $1,714 may be followed by a drop into $1,704-$1,710 range.
On the daily chart, gold looks sideways within a range of $1,686-$1,733.
An escape could suggest a direction. A break above $1,733 may lead to a gain into $1,761-$1,808 range while a break below $1,686 could confirm the continuation of the downtrend towards $1,611.
Comments
Comments are closed.