If it is not clear to gold investors and traders by now, $1180 is a KEY level for TWO reasons:
It is a well-tested level that has been crossed or touched at 5 points minimum on this weekly chart.
It is also a multiple-year level that becomes more significant the longer it defies sellers.
XAUUSD weekly chart clearly shows significance of $1180 as key level
Gold price can still cross below $1180. It did so twice and most recently stayed below for nearly 3 weeks. If you look at this week’s price action on the daily chart below, I think that price action yesterday and the day before is loud and clear evidence the stopping power of $1180.
XAUUSD daily chart shows supporting power of $1180 just yesterday and the day before
Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.
Soh Tiong Hum is a member and regular speaker at Technical Analysts Society Singapore events and has a bi-monthly lunch time event at IG Singapore on forex and stock markets. He is an avid blogger on technical analysis topics; his Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.
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