Gold retests – Analysis - 22-05-2017

Gold price retested the previously broken support of the bullish channel that appears on chart and kept its stability below it, accompanied by witnessing clear negative signals through stochastic, which supports the chances of bouncing bearishly and decline in the upcoming sessions.

Therefore, the bearish bias will remain suggested for today, and the main target is represented by testing 1229.32 level before attempting to return to resume the main bullish trend again, noting that breaking 1246.00 will complete forming negative formation that supports the expectations of decline towards the mentioned target, while breaching 1259.00 will stop the suggested bearish bias and lead the price to regain its main bullish track again.

Expected trading range for today is between 1230.00 support and 1260.00 resistance.

Expected trend for today: Bearish temporarily