Gold flirts with a descending price channel's ceiling - technical analysis - 14-12-2015

Gold prices rose modestly in the intraday levels, carried away to a descending price channel's ceiling, which limits gold's movements in the short term; with a continued negative pressure from the simple moving average for the period 50, and a forming of a negative divergence at the Stochastic indicator below the attached chart, doubling the negative pressure on the precious metal's movements. That's why we attribute the last gains to a recovery attempt for some of the lost ground.

 

We therefore expect a resumption of decline, targeting the crucial support level of 1,054.00, as long as it stays confined by the price channel.