Gold technical analysis for March 10, 2016

Gold price moved lower yesterday but remains above the critical and trend support. The levels of $1,225 and $1,240 act as support, especially the first one. So, as long as we are above that level, the price could push towards new highs.

Blue lines - bearish channel

Gold price is inside of a short-term bearish channel. The price is now testing the Kumo (cloud) in the 4-hour chart. This is a short-term support area. If the price breaks below $1,240, then the next support at $1,225 will be tested. And this is the most important support level. Resistance is seen at $1,252. Breaking above it will open the way for a push towards recent highs.

Nothing new is seen in the weekly chart. The price is above Kumo (cloud). Oscillators are overbought, but there is still no divergence. Important weekly support is found at $1,220-$1,200. As I have been saying for the last few days, bulls need to be very cautious as the entire rise from $1,045 could be over.The material has been provided by InstaForex Company - www.instaforex.com