Gold resumes the decline – Analysis - 27-05-2016

Gold price bounced bearishly after the price found good resistance formed by the previously broken support line that appears on chart, reinforced by stochastic negativity that appears on the four hours’ time frame, besides the continuous negative pressure offered by the EMA50.

Therefore, the bearish trend scenario will remain valid efficiently for the upcoming period, and the targets begin by testing 38.2% Fibonacci level at 1205.80, which breaking it represents the key to extend the bearish wave towards 1175.60, while the negative overview will remain valid unless breaching 1243.17 level and holding above it.

Expected trading range for today is between 1190.00 support and 1230.00 resistance.

Expected trend for today: Bearish