Gold amid positive outlook - Technical Analysis - 20-01-2016
Gold rose in the intraday levels trading, which comes after prices gained positive momentum following a leaning on the SMA50, while moving along the upward trend line the short term, and with an influx of positive signals from relative power indicators like the Stochastic as shown below the attached chart. Gold then approached the important resistance of 1,101.74, which represents the ratio 38.2% of Fibonacci retracement levels for a descending wave in the short term (from 1,191.51 to 1,046.25), readying to attack it.
Therefore we reaffirm our positive outlook for gold, especially if it breached the resistance of 1,101.74, opening the door for more gains, and targeting subsequently the resistance of 1,118.88, which represents the ratio 50% of the same retracement levels.
Trend
Bullish