Gold gets rid of the negative pressure - Technical Analysis – 28-10-2015

Gold price rose recently to breach the flag pattern’s resistance level as appears on chart, leading the price to breach the moving average 50, which allows it to get rid of the negative pressures, offering positive indicators for the coming trading, noticing that the relative strength index indicators reach clear overbought areas.

Therefore, we expect rising in the coming periods, targeting 1186.50 resistance initially, which represents the recently recorded top.