Gold awaits the rebound – Analysis - 27/05/2015

Gold price approached from hitting the critical support at 1181.00 after the decline that appeared yesterday, noticing that the price provides bullish rebound signals now that supports the chances of targeting the critical resistance at 1225.00 again, where stochastic provides positive signals on the four hours time frame, we notice that the bullish trend line that appears in the image carries the price well.

Therefore, these factors encourage us to expect bullish bias for today, and breaching 1205.00 level will ease achieving extended targets reach to 1225.00 then 1244.00, being aware that breaking 1181.00 level will stop the positive expectations and pushes the price to suffer more losses on the intraday and short- term basis.

Expected trading range for today is between 1181.00 support and 1210.00 resistance.

Expected trend for today: Bullish