Gold breaks the support – Analysis - 21-02-2017

Gold price achieved a break to the minor bullish channel’s support, and stochastic provides negative signal now that supports the continuation of the decline in the upcoming period, to make the bearish bias preferred on the intraday basis, and the target is testing the main bullish channel’s support at 1218.50 mainly, pointing that we will be waiting for a bullish rebound after hitting the mentioned target to resume the main bullish trend.

Therefore, we prefer the domination of the negative pressure on the upcoming trading until breaching 1236.00 and holding above it, where this breach will allow the price to regain its bullish track, and its main targets begin at 1249.94 and extend to 1270.00.

Expected trading range for today is between 1218.50 support and 1240.00 resistance.

Expected trend for today: Bearish temporarily