Gold inside a positive formation – Analysis - 31-05-2016

Gold price could not manage to hold for long time below 1205.80 level, to trade positive in attempt to move away from this support, and by taking a deeper look at the chart, we find that the recent trading is confined inside a potential falling wedge pattern, which means that breaching this pattern’s resistance at 1215.00 will form positive motive that push the price to achieve more gains in the upcoming period.

Stochastic provides positive signals on the four hours’ time frame, thus, we believe that the chances are valid to provide more positive trading on the intraday and short term basis, and the first target is testing 1243.17 level, noting that breaching this level will confirm extending the bullish wave on the longer term basis to target the recently recorded top at 1303.58, while breaking 1205.80 level will push the price towards more bearish correction that its next target located at 1175.60.

Expected trading range for today is between 1190.00 support and 1243.17 resistance.

Expected trend for today: Bullish