PRICE OF GOLD HAS VERY LITTLE SUPPORT UNTIL AROUND US$770

As expected, and as forecast in last week’s column, gold moved sideways for a couple of days and then dropped down strongly, breaking through support at last week’s S1 (now noted on the chart as R1).

Now that support has been broken, there is very little technical support on the chart until around 770. There may be a brief upwards bounce from minor support at S1 but that should be capped by resistance at 816.



TECHNICALS
Stochastic – oversold
Bollinger Bands – relatively oversold
R1 – resistance at 816
S1 – minor support at 800.
S2 – zone of support from 782- 770.

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Article and Commentary by Don Schellenberg. A trader and trading coach, he is a noted expert on Market Structure, Elliott Wave and Fibonacci. He trades the forex market.