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Daily analysis of Gold for January 26, 2016

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Overview

The gold price touched our awaited target at 1,197.10 and closed above the mark, showing bullish rebound signals that support the chances of resuming the main bullish trend again after the recent temporary decline. Stochastic shows clear positive signals on the four-hour time frame. Therefore, the bullish trend will be suggested in the upcoming sessions, and the price needs to breach the 1,203.29 barrier to head towards the expected bullish wave targets that begin at 1,218.55 and extend to 1,249.94 on the near-term basis. Breaking and holding below 1,197.10 levels will stop the positive scenario and push the price to extend its bearish correction to 1,183.83 as the next main station. The expected trading range for today is between the 1,190.00 support and the 1,218.55 resistance.

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