Gold price shows mixed trades – Analysis - 16-12-2021

Gold price declined clearly yesterday after breaking 1770.00 level, but it stopped at 1753.00 and bounced upwards strongly to settle around the EMA50, inside the bearish pennant pattern that appears on the chart, noticing that stochastic loses its positive momentum and shows overbought signals now, to form negative motive that we expect to push the price to decline again.

Therefore, we will keep the overall bearish scenario unless the price continued to rise to breach 1788.00 followed by 1797.00 levels, noting that our targets begin by breaking 1770.00 to open the way to rally towards 1734.00 as a next station.

The expected trading range for today is between 1755.00 support and 1797.00 resistance.

The expected trend for today: Overall bearish