Technical analysis on Gold for May 16, 2018

Gold price did not continue the bounce as we expected but reached our target of $1,288 once $1,301 was broken. We warned that Gold price could fall towards $1,295-$1,285 if $1,301 was broken. Trend is bearish. Gold price has reached important medium-term trend support trend line.

Red line – long-term resistance

Blue upward sloping line – medium-term support

Green upward sloping line – long-term support

Gold price is challenging important trend line support. If this trend line is broken we should expect price to fall further towards the green trend line support around $1,250. As long as price is below $1,320 trend will remain bearish. There are many chances we see a bounce from this area but we have to be patient to see a more constructive price move higher before turning bullish again.

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

Source:: Technical analysis on Gold for May 16, 2018