Gold breaks through an important resistance. - Technical Analysis - 06-01-2016

Gold prices kept rising in the intra-day levels and the short term, which comes after a venting-off of overbought saturation that was apparent in relative power indicators like the Stochastic previously, which comes contradictory to the gold's upward movements, indicating an attempt by the prices to get rid of the negative pressure of that overbought saturation, along with the continuing positive support of the simple moving average for the period 50, succeeding thereafter to trespass the resistance level 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)/

 

Therefore we expect more gain for the precious metal, targeting the resistance level of 1,085.76 of the retracement levels.