Gold needs confirmation signal – Analysis - 25-05-2017

Gold price ended yesterday's trading above 1254.56 level, as the EMA50 formed good support that stopped the negative pressure that dominated the price recently, but the price still below the bullish channel's support line that appears on chart, besides that stochastic reaches the overbought areas now.

Therefore, this contradiction between the technical factors makes us prefer staying aside temporarily until we get clearer confirmation signal for the next trend, which we will get through breaching one of the key levels represented by 1254.56 support and 1262.25 resistance, noting that breaking this support will push the price to test 1229.32 level before any new attempt to rise, while breaching the resistance will bring the price back to its main bullish track again, to start the positive targets at 1295.37.

Expected trading range for today is between 1240.00 support and 1275.00 resistance.

Expected trend for today: Depends on the above mentioned levels