Gold begins bearish correction – Technical Analysis – 24-05-2016

The break achieved to the bullish channel’s support offers signals of starting bearish correction for the last bullish wave that appears on chart, and the price is testing 23.6% Fibonacci level located at 1243.20, and breaking it will confirm the continuation of the correctional decline towards 1205.80.

The exponential moving averages 50 and 100 form negative pressure that supports the continuation of the bearish trend, besides the negativity that appears on stochastic, which makes the bearish bias expected as long as the price is below 1272.35.