Gold continues to decline – Technical Analysis – 30-10-2015

Gold price continued to decline yesterday, affected by breaking the short term bullish trend line, besides the negative pressure of the moving average 50, which pushed it to break 1156.05 support that represents 38.2% Fibonacci of the short term bullish wave from 1098.67 to 1191.51, to reach 1145.09 support that represents 50% Fibonacci level, accompanied by the positive signals that come by the relative strength indexes after reaching clear oversold areas.

Therefore, the bullish trend is expected for today, attempting to recover some losses and get rid of the oversold signals that appear on the relative strength indexes, conditioned by the stability above 1145.09 support, waiting to reach 1156.05 resistance level, while breaking 1145.09 support will confirm heading for more decline to target 1134.13 level.