Gold still move around the white line, mostly above the white line. It tried to go lower but failed, indicated that the bear didn't have enough power to push gold lower.
In the other hand, the bull seems also don't have power to push gold higher yet.
I think the market is still waiting for FOMC announcement later tonight (my time) and I'm sure that the price will move significantly at that moment.
If we put the news into account, I believe gold probably will go higher at FOMC announcement because there is a big probability that the fed will announce additional easing to extend the operation twist that will be expired this month. If the fed do that, I believe gold will go higher, and more likely will break my yellow resistance. My expectation area for this scenario is 1730-1750 area.
But if there is no operation twist extension, I think gold will break low, and if it can break both my support, I think it can go to 1675 area. But I doubt gold can go lower than that.
In my opinion, gold will move to both sides (up and down) in a big volatility first before going to the certain direction. So, don't put your SL too close.
Trade well
GG - 2012.12.12
Nothing change from FOMC announcement. QE 3 ($40B) and Operation Twist ($45B) continue.
BalasHapusI guess there will not be high volatility.
Better use the technical. Let's see...