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11.05.201609:01 Forex Analysis & Reviews: Technical analysis of Gold for May 11, 2016

Long-term review

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Gold price as expected has bounced towards $1,270-80 area. Price has reached the first important short-term resistance at the 38% Fibonacci retracement of the decline from recent highs. This upward bounce could continue higher.

Blue line - broken channel

Price has entered the Kumo area where opening a position should be avoided as this is neither a bull or a bear area. Price has also reached the 38% Fibo. Support is at the tenkan-sen (red line indicator) at $1270. Next support is at $1,264. Resistance is here at $1,275 and next at $1,277 at the 50% retracement.

Blue lines - bullish channel

Gold price remains inside the blue bullish channel and above the daily kijun-sen (yellow line indicator) support. A break above the daily tenkan-sen (red line indicator) could suggest that new highs could be seen. At this point a new higher high will be expected to overshoot above the bullish channel and we could even see price towards $1,400.

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