Gold attacks an important resistance - Technical Analysis - 09-02-2016
Gold prices kept powering up in the intraday levels and short term, with ongoing positive support from the SMA50, coinciding with a venting-off of overbought saturation apparent in relative power indicators, in a way that is contradictory to the prices' upward movement, showing off the strength of the current rally. Gold then reached the important resistance of 1,195.56, representing the ratio 50% of Fibonacci retracement levels for a descending wave in the long term (from 1,344.87 to 1,046.25), readying to attack it.
Therefore we expect more gains to come for the precious metal, especially if it breached the resistance of 1,195.56, targeting the next resistance at 1,230.80, which represents the ratio 61.8%.
Trend
Bullish