Gold attempts to activate the positive pattern – Analysis - 06/05/2016

Gold price begins the attempts to breach the minor bearish channel’s resistance that appears on chart, which we believe that it forms bullish continuation pattern that we are waiting to motivate the price to resume the main bullish wave, and the price needs to breach 1283.17 level to add more confirmation to continue rising in the upcoming sessions.

Therefore, our bullish trend expectations will remain valid efficiently for the upcoming period, supported by stochastic positivity, while the EMA50 continues to carry the price from below, waiting to surpass 1300.00$ per ounce barrier to head towards 1344.85 as a next main station, noting that holding above 1270.30 level is key condition to the continuation of the rise for today, as breaking this level represents negative factor that will push the price to test the key support base 1227.40 before turning back to rise.

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

Expected trend for today: Bullish