Gold stalls after big gains - Technical Analysis - 10-02-2016
Gold prices engaged in relatively volatile trading, leaning downwards as the previous metal regroups and gathers momentum for more rises, and as traders take profits after a series of quick rises in the short term, with positive pressure from the SMA for the last 50 days period, which comes after prices tested the important resistance of 1,195.56, which represents the ratio 50% of Fibonacci retracement levels for a descending wave in the long term (from 1,344.87 to 1,046.25).
Therefore we reaffirm our positive outlook for the precious metal, as long as it breaches the resistance of 1,195.56, targeting thereafter 1,230.80, which represents the ratio 61.8% of the same retracement levels mentioned earlier.
Trend
Bullish