After a huge volume of sell orders for gold yesterday, the short-term technical scenario has changed again. The spot price was unable to challenge the resistance level of $1,730-$1,735 and after two failed attempts in April to break above $1,730, this has now formed a double top, opening space for a temporary correction, particularly after gold lost more than $40 Dollars in just 24 hours. The spot price is now trading near the key support level of $1,675 and a clear breakdown of this threshold would be a clear negative signal, with potential space for further falls to $1,630.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
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© 2019 High Leverage FX - All Rights Reserved.