Gold tests the moving average – Analysis - 28/08/2015

Gold price shows some slight bullish bias affected by stochastic positivity, which loses this positivity gradually approaching from the overbought areas, noticing that the EMA50 forms good intraday resistance that keeps the chances of bouncing bearishly to resume the intraday bearish trend valid, which mainly depends on moving inside the bearish channel that appears on chart.

Therefore, we are waiting to break 1115.95 level to confirm extending the bearish wave towards 1100.00 then 1080.00, noting that breaching 1160.50 level will stop the bearish trend expectations and push the price to turn to rise.

Expected trading range for today is between 1100.00 support and 1149.00 resistance.

Expected trend for today: Bearish