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Daily analysis of GOLD for May 16, 2016

GOLDH4.png

Overview

The gold price failed to break the bullish trend line (shown on the above chart) to trade positively and breach the minor bearish channel's resistance. The latter forms bullish flag continuation pattern that we expect to lead the price to achieve more gains in the upcoming period, especially given that the EMA50 supports the price from below. Therefore, we expect more bullish bias on the intraday and short-term basis to resume the main bullish track, which targets begin by breaching the previously recorded top at $1,303.58 heading towards $1,344.85 as the next main station, noting that breaking the $1,263.70 level will stop the positive overview and push the price to test $1,243.17 levels before any new attempt to rise.

The expected trading range for today is between the $1,260.00 support and the $1,300.00 resistance.

The material has been provided by InstaForex Company - www.instaforex.com