Gold inside a positive pattern – Analysis - 05/05/2016

The EMA50 managed to stop the negative attempts of Gold price yesterday, to begin to test 1282.92 level, by looking deeper in the chart, we find that the last trading confined within a bullish continuation flag that appears in the minor image, which means that breaching its resistance level located at 1285.75 will provide good positive motive that supports the continuation of the expected bullish trend on the short term basis.

Stochastic shows positive signals on the four hours time frame, which encourages us to prefer breaching the above mentioned resistance then activating the positive pattern, therefore, our bullish trend expectations will remain valid and active in the upcoming period, and the next main target located at 1344.85, pointing that holding above 1268.90 important for the continuation of the bullish bias for today.

Expected trading range for today is between 1266.00 support and 1310.00 resistance.

Expected trend for today: Bullish