Gold has a habit of surprising traders. It lies dormant, sneaks up or down, or trades in a range for some time and then suddenly breaks out. Its range has been narrowing recently, suggesting it might move one way or the other.
You can see a chart here:
http://www.livecharts.co.uk/MarketCharts/gold.php
In the current session, the price has bounced off what appears to be quite strong support at $US1100, but gold is still below its 100-day and 20-day moving averages and only just above its 50-day moving average. The bounce up in todays session suggests a possible upward move from here, and if it can break through resistance at $US1140 then a resumption of the recent uptrend could be assumed.
On the other hand, if the bounce runs into resistance earlier at 1120, that would suggest a move back to 1100, with a more bearish outlook if support at that level is broken.
Note: this post does not constitute advice to make this trade. Is this one of the stocks or instruments on your list? Does your own research and technical analysis on the stock or instrument support the trade? Is it in harmony with your written trading strategies and rules? Unless you can answer yes, you should not enter the trade.
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