Technical analysis of gold for December 13, 2017

analytics5a30dc84bdc5a.png

Gold price remains in a bearish trend but yesterday we observed the bullish divergence in the RSI together with a candlestick reversal pattern. Price has the potential to rise to $1,260 today.

Red lines – bearish channel

Black lines – bullish divergence

Gold price has broken out of the bearish channel and is now back testing it. The RSI is warning bears that the downside momentum has weakened. The 4-hour candle pattern of a bullish hammer is usually a trustworthy reversal pattern. Resistance is at $1,247. Breaking above it will confirm the reversal pattern and push price towards cloud resistance at $1,255-60.

analytics5a30dced2ca61.png

On a daily basis Gold price has also made a bullish hammer. With FOMC tonight we expect Gold price to be volatile. If price is near $1,260 before the FOMC, I would prefer to be neutral as we might see another leg down towards $1,220-$1,200.

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

Source:: Technical analysis of gold for December 13, 2017

Won't your trader friends like this?
InstaForex
About the Author
InstaForex brand was created in 2007 and at the moment it’s a top choice of more than 2,000,000 traders. More than 1,000 clients open accounts with InstaForex every day. All InstaForex clients get great opportunities for effective trading on the forex market, as well as on-time technical and customer support

Related Posts

Leave a Reply

*