By Yan (ForexYard) – Over the past month, gold saw a bullish trend and gained about 800 pips. An ounce of gold rose from $1,085 to $1,167 by last Sunday. However, ever since reaching $1,167 an ounce, gold seems to be stuck at a narrow range.
• The chart below is the gold daily chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD and the Relative Strength Index (RSI).
• A series of doji candles recently took place, suggesting that a sharp movement is impending.
• It appears that the bullish channel was halted after peaking at $1,167 an ounce.
• Gold currently seems to be trading at a narrow range from $1,144 to $1,167 an ounce.
• The next short-term movement is currently unclear.
• It appears that $1,167 could be a potential entry buying level, whereas the $1,144 price could be a potential entry selling level.
• In case an upward move will take place, it has potential to reach the $1,192 level. It also seems that if gold will drop below $1,144, it could drop towards the $1,110 level.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
