Gold confined in sideways trading. - techincal analysis - 16-12-2015

Gold gained ground in the intraday levels, confined however by sideways trading in the medium term between the resistance of 1,088.70 and the support of 1,054.00. A descending price channel limited the precious metal's movements, along with negative pressure from the simple moving average for the period 50; and it's worth noting that relative power indicators have reached overbought levels.

 

Therefore we think it's more likely that gold will resume its decline in the intraday levels, targeting the important support of 1,054.00.