Gold within descending channel – Technical Analysis – 06-11-2015

Gold price reached to the key support 1104.00 mentioned in our previous report, which allowed it to gather some positive momentum that pushed it to rise with today’s opening, accompanied by the relative strength indexes reach to the overbought areas, hinting a correctional rise in attempt to recover some losses, with more negative pressure as the price trades within short term descending channel, below the moving average 50, besides forming negative divergence by stochastic.

Therefore, as long as the price is below 1113.00, we expect a decline on the intraday basis, especially after breaking 1104.00 level, to open the way for more decline that targets 1094.00 level.