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Daily analysis of Gold for January 23, 2016

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Overview

Gold price shows some bearish bias after testing the recently recorded top at 1,218.55, while the price is still trapped inside the bullish channel that appears on the chart. Please note that the EMA50 protects trading inside this channel to keep the bullish trend scenario active for today. The mentioned level is expected to be broken, that opens the way to head for 1,249.94. Holding above 1202.00 and 1197.10 levels represents the key condition to continue the expected rise for today. Breaking the last level represents a negative factor that will push the price to start bearish correction that its main targets begin at 1,183.83 before the next destination on the short-term basis. The expected trading range for today is between 1,202.00 support and 1,235.00 resistance.

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