Gold completes the positive formation – Analysis - 25/04/2014

Gold price settled above the falling wedge’s resistance which was breached yesterday, which forms a positive factor that support the continuation of the bullish bias in the upcoming period, but we notice that the EMA50 forms an intraday resistance that blocks the price rise, besides that stochastic lost its positive momentum clearly.

Therefore, these factors make us expect witnessing sideways trading between 1300.00 resistance and 1281.00 support, until it manages to breach one of these levels to detect its next targets clearly, as breaching the mentioned resistance will open the way to return to the bullish trend again, with targets begin at 1350.00 and extend to 1400.00, while breaking the support will push the price to visit 1250.00 level before any new attempt to rise.

Expected trading range for today is between: 1270.00 support and 1320.00 resistance.

Expected trend for today: Sideways