Technical Analysis of Gold for March 30, 2016

Technical Analysis of Gold for March 30, 2016

30 March 2016, 11:20
Roberto Jacobs
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Technical Analysis of Gold for March 30, 2016

Gold prices bounced yesterday towards our target area of $1,235-40 as expected by our analysis. Gold has now reached an important short-term resistance. If the price manages to break above $1,250 we could even see new highs towards $1,300. Otherwise we should expect a break of $1,208 and new lows towards $1,190-$1,170.


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Blue lines - bearish channel

Gold remains below the Kumo (cloud) and the stochastic oscillator has turned overbought. We could see a move a little bit higher closer to the upper channel boundary near $1,250 but this will be the main test. Only a clear break and close above $1,250 will help bulls make new highs. A rejection here will bring the price back to its recent lows and even lower.


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There are bearish divergence signs on the weekly chart by the stochastic oscillator. The price, however, remains above the Kumo and the 38% Fibonacci retracement. The divergence signals imply that the pullback is not over. I expect Gold to make a big pullback towards the $1,150 area at least.


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






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