Chart of the Day
Gold Daily Chart — July 27, 2010
By
James Chen
, Published:
07/27/2010
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
7/27/2010 – Spot Gold – Price action on gold (a daily chart of which is shown) as of Tuesday (7/27/2010), has just tentatively broken down below a long-term uptrend support line that extends at least all the way back to the October 2008 low. This breakdown is significant because the broken trendline has accurately defined the bullish trend in gold for at least the past 21 months. The current trendline breakdown occurs after price hovered for about a week above the trendline. Currently, an immediate downside support target on this breakdown resides in the 1160 price region. In the event of further bearish momentum on this breakdown, a further downside target resides in the 1145 price region.
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James Chen, CMT
Chief Technical Strategist,
FX Solutions
Chief Technical Strategist,
FX Solutions
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