Gold muscles through a pivotal resistance - Technical Analysis - 21-01-2016
Gold kept powering up in its intraday levels trading, with positive support from the SMA50, and the dominance of the upward short-term trend, with the prices moving along its ascending line, succeeding finally in breaching the pivotal 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). Confirmation of the breach remains to be seen however.
We therefore forecast more gains for the shiny metal, especially if it settled above 1,101.74, targeting thereafter the resistance of 1,118.88, representing the ratio 50% of the same retracement levels alluded to earlier.
Trend
Bullish