Gold touches the ceiling of a descending price channel - technical analysis - 21-12-2015

Gold gained ground in the intra-day levels, as we forecast in our previous analyses, reaching the ceiling of the descending price channel that limited its previous movements in the short term as shown in the attached chart, along with trespassing the simple moving average for the period 50, getting rid thereafter from the negative pressure; while noting that relative power indicators have reached relatively overbought levels compared with the price's upward movement.

 

We therefore think it's likely that gold will resume its decline, as long as it trades within that price channel, especially if it settled below the level of 1,065.00, targeting thereafter the support of 1,054.00 again.