Gold broke $1072.30, the July support level, and moved decisively below it this week.
On Friday a further decline connected to traders in China and a very heavy sell order in a thin market the day after the Thanksgiving holiday sent the price below critical support levels.
Nat’s swing trades from last week, posted before the week began, captured most of the move. The market bounced up to her key level and gave traders lots of good entries on Tuesday and Wednesday, then dropped to her 1st buying level on Friday to prode the exit.
Traders who captured the entire move made about $23 per contract, a gain of $2,300 for the week. Here’s the annotated chart.
The bearish sentiment will continue influencing GOLD price this week. The short-term down trend channel will contain the GOLD price movement.
The ultra-short-term oversold could lead price for a brief bounce early in the week.
But $1072 broken support line will act as a resistance and prevent price from popping.
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GOLD will not be shining at the current stage. In short term, GOLD price is unlikely to move back above $1120 level. The long-term, intermediate-term and short-term trend will remain downside. The psychological support is near $1000 level. GOLD is likely slowly heading toward there.
This week $1053.50-56.50 zone will be a key zone. Holding above it could push GOLD back up to $1066-$1072 for testing. A break below $1050 level will be bearish again. A further decline toward $1040-25 zone should be expected.
LONG-TERM SUPPORT at $1007.7-$1033.90 – Yearly breakout level from Year 2008- 2009
LONG TERM TRENDline SUPPORT at $1009.50 this week.
INTERMEDIATE TERM SUPPORT at $1045-$1035 zone