Gold tries to gain some positive momentum - Technical Analysis - 19-01-2016
Gold oscillated in a tight range of trading in the intraday levels, leaning on the SMA50 in n attempt to gain some positive momentum that would help it rise again, along with venting-off of overbought saturation that was apparent in relative power indicators, and an influx of positive signals from them. The prices then settled above the support of 1,080.53, which represents the ratio 23.6% of Fibonacci retracement level for a descending wave in the short term (from 1,191.51 to 1,046.25), with the prices trading along the upward trend line in the short term.
Therefore we expect the precious metal to appreciate in the coming trading, targeting the resistance of 1,101.74, which represents the ratio 50% of the same retracement levels mentioned earlier.
Trend
Bullish