Gold affected by negative pressures. - technical analysis - 17-12-2015

Gold initially made some gains in the intraday levels, testing the resistance of 1,073.00, along with flirting with the ceiling of that descending price channel with limited its movements previously in the short, which led to a doubling of negative pressure on prices, which in turn pushed gold lower, trespassing the simple moving average for the period 50 again, along with an influx of negative signals from relative power indicators like the Stochastic indicators as shown below the attached chart.

 

We therefore expect the precious metal to decline further, as long as the resistance of 1,073.00 holds on, targeting thereafter the support of 1,054.00.