As we noted in yesterday's blog, we expected gold to find resistance at 1718 and this is exactly what happened. After hitting this level early in the afternoon, gold fell away and is now trading around 1700 again.
If 1700 holds, we will potentially form a "double bottom" on the charts, a move up from here would therefore be bullish. However, if 1700 fails then 1693 and 1680 come into play.
We think that a bottom is not too far away now, though we could see a spike down to flush out sell stops before we start to rise again.
Today's video looks at the recent down trend channel and support and resistance levels in more detail.
If 1700 holds, we will potentially form a "double bottom" on the charts, a move up from here would therefore be bullish. However, if 1700 fails then 1693 and 1680 come into play.
We think that a bottom is not too far away now, though we could see a spike down to flush out sell stops before we start to rise again.
Today's video looks at the recent down trend channel and support and resistance levels in more detail.