Technical analysis of Gold for May 24, 2016

Gold price continues to trade in a bearish trend and is expected to move towards $1,230 before a bigger bounce. Overall I believe a big correction has started that will bring price towards $1,170-90.

Black line - resistance trend line

Blue lines - bearish channel

Gold price is trading below the Kumo (cloud) and inside the bearish channel. I believe we are close to completing the downward move from $1,290 but only a corrective bounce is expected to follow. Trend is bearish and price is heading towards $1,190-70 as long as price is below $1,290.

Weekly chart remains bearish as price is below the tenkan-sen (red line indicator). Stochastic oscillator is turning lower from overbought levels and this implies that the downward move has just started and we should expect price to at least reach $1,190.The material has been provided by InstaForex Company - www.instaforex.com