Friday’s deep hanging man signal did indeed trigger a minor move lower for spot gold on the daily chart, but interestingly the gapped down open was not supported during the day, with the gold spot price in fact ending the trading session marginally higher, but a fraction below Friday’s close. Indeed it is interesting to note the support offered by the 9 day moving average in yesterday’s gold trading session, suggests that we may see spot gold prices move higher in due course, thereby ignoring the hammer candle, but only a break and hold above the $ 1200 per ounce price handle will be sufficient to indicate that the signal can be ignored. Until then we need to trade with caution, particularly as yesterday’s price opened with a gap down, which may suggest temporary weakness in the move and a possible move lower in the short term. However, with the moving averages continuing to indicate further support to the move & yesterday’s “inside day” candle we could even see spot gold prices breach the $1200 price before the end of the year.
What is the best platform for gold trading? In my view it is Metatrader 4. Download your free demo copy of the metatrader 4 software by clicking on the following link, download metatrader free, and get started today.
Support & Resistance for the Spot Gold Price :
S1: 1168.40 R1: 1185.80
S2: 1157.50 R2: 1192.30
S3: 1151.00 R3: 1203.20
Leave a Reply