Gold closes up. - Technical Analysis - 05-01-2016

Gold prices rose in their intra-day levels and short-term trading, with the continuing support of the simple moving average for the period 50, and a venting-off of overbought saturation that was apparent in the relative power indicators in a way contradictory to the prices' upward movements, which is a very good sign on the strength of the upward trend in the intra-day levels. Gold succeeded thereafter in breaking through the resistance of 1,078.21, which represents the ratio 61.8% of Fibonacci retracement levels for a descending wave in the short term (from 1,097.97 to 1,046.25) in today's initial trading.

 

Therefore we expect more gains for the precious metal, especially if it settled solidly above the level of 1,078.21, targeting thereafter the crucial resistance of 1,085.76, which represents the ratio 76.4% of the same retracement levels.