Gold tries to gain positive momentum - Technical Analysis - 28-01-2016
Gold rose in the intraday levels, confirming the breach of the resistance of 1,118.88, which represents the ratio 50% of Fibonacci retracement levels for a descending wave in the short term (from 1,191.51 to 1,046.25), before bouncing lower in today's morning trade, as traders take their profits, and also as prices attempt to gather positive momentum that would help them continue the rally, while noting that relative power indicators have reached extremely oversold levels.
Therefore we expect more gains to come for the precious metal, especially if it settled above 1,118.88, targeting thereafter the next resistance of 1,136.02, representing the ratio 61.8% of the same retracement levels mentioned earlier.
Trend
Bullish