GOLD: Flash Crash and Rally
Technical analysis of gold
Gold investors have had little pleasure in their investment in recent months. Most recently, it was accelerated downwards as part of a flash crash. But the critical support zone could be defended.
The price of gold (XAUUSD) has been in a pronounced correction phase since it hit a record high at USD 2,075 a year ago. The multi-week double bottom at USD 1,677 that was pulled in in the spring was followed by a rally to USD 1,917. Then the bears reported back and sent the precious metal south again. With the flash crash seen in Asian trading on August 9, the price hit the corrective low again. A successful test of the support zone located there was recently followed by a strong recovery movement.
Does the outbreak succeed?
The price is now facing a broad zone of resistance, which we consider critical. It ranges from $ 1,790 to $ 1,834 and results from a variety of resistance issues that form a cluster. These include the moving average lines of the past 50, 100 and 200 days, the congestion zone established there before the last price slide and the downward trend line from the interim high at the beginning of June. It remains to be seen whether a sustainable increase over this massive hurdle will succeed. If successful, we would consider continued price gains towards USD 1,880 / 1,890 and then the further important resistance zone at USD 1,917-1,974 to be likely.
Second mainstay?
Below the $ 1,834 mark, however, investors should expect another downward wave. If the quotation remains above the support at USD 1,751, the bulls will remain in a good starting position for a timely formation of a resilient bottom for a short time. Below this, however, a stronger setback towards USD 1,724 / 1,732 and possibly again USD 1,661-1,677 should be planned. We consider the latter zone to be critical in the long term.
Note:
Despite careful analysis, Global Investa accepts no liability for the content, topicality, correctness or completeness of the information provided. The information provided does not constitute investment advice, purchase recommendations or investment brokerage.
Gold investors have had little pleasure in their investment in recent months. Most recently, it was accelerated downwards as part of a flash crash. But the critical support zone could be defended.
The price of gold (XAUUSD) has been in a pronounced correction phase since it hit a record high at USD 2,075 a year ago. The multi-week double bottom at USD 1,677 that was pulled in in the spring was followed by a rally to USD 1,917. Then the bears reported back and sent the precious metal south again. With the flash crash seen in Asian trading on August 9, the price hit the corrective low again. A successful test of the support zone located there was recently followed by a strong recovery movement.
Does the outbreak succeed?
The price is now facing a broad zone of resistance, which we consider critical. It ranges from $ 1,790 to $ 1,834 and results from a variety of resistance issues that form a cluster. These include the moving average lines of the past 50, 100 and 200 days, the congestion zone established there before the last price slide and the downward trend line from the interim high at the beginning of June. It remains to be seen whether a sustainable increase over this massive hurdle will succeed. If successful, we would consider continued price gains towards USD 1,880 / 1,890 and then the further important resistance zone at USD 1,917-1,974 to be likely.
Second mainstay?
Below the $ 1,834 mark, however, investors should expect another downward wave. If the quotation remains above the support at USD 1,751, the bulls will remain in a good starting position for a timely formation of a resilient bottom for a short time. Below this, however, a stronger setback towards USD 1,724 / 1,732 and possibly again USD 1,661-1,677 should be planned. We consider the latter zone to be critical in the long term.
Note:
Despite careful analysis, Global Investa accepts no liability for the content, topicality, correctness or completeness of the information provided. The information provided does not constitute investment advice, purchase recommendations or investment brokerage.
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