InstaForex - Analytics

    InstaForex

    700.25 6.25/10
    62% of positive reviews
    Real

    Technical analysis of Gold for May 3, 2016 2016-05-03

    Gold made a shallow pullback yesterday but remains inside a short-term bullish trend targeting $1,325. The price has some more upside left but as I said in previous posts, Gold bulls need to be very cautious.

    analytics57284a65cb3d2.jpg

    Show full picture

    Black line support

    Yellow area - overbought signal

    Gold has broken below the short-term support by the tenkan-sen and is trying to break above it again today. Resistance is at $1,297. The next support is at $1,270. The stochastic is overbought and turning lower as the RSI also is. We could spot another bearish divergence in these oscillators before a meaningful bearish reversal in the price.

    analytics57284adf90ad7.jpg

    Show full picture

    The gold price is expected to reach the upward sloping red trend line that touches the two previous highs. The stochastic is diverging and I believe a new high in the area of $1,325 will be the final one before a pullback towards $1,150. The trend remains bullish for now with no reversal signal yet. Important short-term support is at $1,270.


    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree