Gold tries to gather positive momentum - Technical Analysis - 22-01-2016
Gold prices fell in the intra-day levels trading, which comes as traders reap profits of recent short-term rises, and as a way for gold to gather some positive momentum that could help it rise again and confirm the breach of the pivotal resistance of 1,101.74, representing the ratio 38.2% of Fibonacci retracement levels for a descending wave in the short term (from 1,191.51 to 1,046.25), with positive pressure from the SMA for the last fifty days period, and the overall dominance of the upward short-term trend.
Therefore we expect more gains to come for the precious metal, as long as it confirms breaching the resistance of 1,101.74, targeting thereafter the next resistance at 1,118.88, representing 50% of the same retracement levels.
Trend
Bullish