Gold dips on profit-taking - technical analysis - 23-12-2015

Gold fell in the intra-day levels, as traders reap the previous profits that materialized in the short term, and to try to gain some positive momentum that could help it rise again, along with the continuing positive pressure from the simple moving average for the period 50, and with the prices being affected by breaching the ceiling of the descending price channel that limited the gold's previous movements in the short term as shown in the attached chart, and with the beginning of a forming negative divergence in the Stochastic indicator below the attached chart.

 

Therefore we expect the precious metal the resume rising, targeting thereafter the crucial resistance of 1,088.70.