Gold leans on an important support. - Technical Analysis. - 08-01-2016
Gold prices kept rising in the intraday levels trading, testing thereafter the resistance of 1,109.00, which we alluded to yesterday as a target for the Double Bottom pattern which formed previously in the short term. Gold then bounced off of it as traders reap the profits, and also as the prices try to find a bottom to help it rise again, like the support of 1,098.41, which represents the ratio 38.2% of Fibonacci retracement levels for a descending wave in the medium term (from 1,182.00 to 1,045.25), and with relative power indicators reaching overly sold levels.
Therefore we expect the precious metal to gain ground in the next trading, especially if the support of 1,098.41 held on, targeting thereafter the resistance of 1,114.53, which represents the ratio 50% of the sam retracement levels, readying to attack it.