Gold price tests the moving average – Analysis - 05-02-2019

Gold price provides slight positive trades after testing the EMA50 yesterday, to reach the key resistance 1316.65 now, accompanied by stochastic loss to the positive momentum clearly and approaching the overbought areas, which forms negative factor that we expect to press on the price to decline again, to keep the negative scenario valid for the upcoming period, waiting to target 1296.00 followed by 1286.70 levels mainly.

Note that breaching 1316.65 and holding above it will stop the expected decline and lead the price to resume the short term bullish trend, which its next target located at 1335.00.

Expected trading range for today is between 1295.00 support and 1325.00 resistance.

Expected trend for today: Bearish