Gold reaches support line

Source: Dukascopy Bank SA


On Monday, the price for gold continued to decline, as the commodity price reached the lower trend line of the channel down pattern, which has guided the metal down since April 18. In addition, it was spotted that the price has been in a smaller scale descending pattern since May 5.

At mid-day, the price had recovered and appeared to have found resistance in the 1,810.00/1,817.40 zone. Meanwhile, the zone was being approached by the 50-hour simple moving average. A move above this resistance zone, is expected to encounter resistance in the upper trend line of the smaller scale channel down pattern near 1,825.00, before reaching the 100-hour simple moving average at 1,830.00.

In the case of a decline, the price would look for support in the 1,800.00 mark, which was spotted to be acting as support already at mid-day on Monday. Below the round price level, note the lower trend line of the larger scale channel down pattern.

Back to articles

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.