Technical analysis of Gold for May 12, 2016

Gold price has reached our targets of $1,270-80 for the bounce we expected. Now Gold price is already 10$ lower than its latest high and got rejected at the 50% retracement of the decline. There are increased chances that a high is in and that a push below $1,260 is coming.

With stochastic oscillator in overbought levels this could be another top at $1,280 and a new downward move has already started. Yes we can see price reach the 61.8% Fibonacci retracement but this is not a necessary condition. If price exits below the 4 hour Kumo then we can say that the next downward move has started. If price remains inside the Kumo we could see a minor new higher high near $1,285.

In the Daily chart price is trapped between the kijun- and tenkan-sen. Daily cloud support is at $1,262 and then at $1,235. Resistance is at $1,285. As long as price is below $1,285 I'm bearish or neutral.The material has been provided by InstaForex Company - www.instaforex.com