14.05.201510:24 Forex Analysis & Reviews: Gold technical analysis for May 14, 2015

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Gold price has been pushed sharply towards the resistance at $1,220 occording to our triangle scenario. Now, it is time for Gold to reverse lower towards $1,190 again. Gold price is trapped inside a consolidation area forming a triangle. Unless Gold price breaks above $1,224, a downward move will be more probable.

Red lines = triangle

Blue lines = expected price path

Gold price is back above the Ichimoku cloud now and the triangle scenario I posted yesterday assumes the price will fall towards the lower triangle boundaries. Gold price has found strong resistance at $1,224 and strong support at $1,175. A breakout of any of them will give us a sharp move towards $1,250 or $1,130-40 respectively.

The weekly chart remains trapped inside the range between the kijun- and tenkan-sen. Gold price is testing the kijun-sen and the cloud resistance as last week the price closed above the tenkan-sen (red line). A rejection at current levels is likely to a bearish signal that will bring Gold price back towards the tenkan-sen. On the other hand, if the price breaks above $1,224, we will test $1,250 which is the upper boundary of the cloud resistance.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.