For Traders

Analytical Reviews

Technical analysis

22.05.201808:43 Forex Analysis & Reviews: Technical analysis on Gold for May 22, 2018

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Gold price bounced from the long-term support of $1,282 and is challenging short-term resistance as we expected. Gold price is expected to continue higher this week and I expect a weekly close above $1,300 to signal a bigger upward reversal and the start of a bigger bounce.

Blue line (RSI) - bullish divergence

Red line - short-term resistance

Green lines -targets

Yellow line- medium-term resistance

Gold price remains in a down trend. As long as price is below the red trend line resistance I will be waiting for new lows. However I see this as the less likely scenario, we have to see signs of strength in order to be more confident of our bullish scenario. Such signs will be initially the break above the red line resistance. Yesterday we tested that resistance and got rejected. A higher low today and a higher high will be a bullish sign for the next couple of weeks.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.