Technical analysis of gold for January 19, 2018

Gold price continues to trade above the $1,320-$1,309 support area where it last made a consolidation before the breakout to $1,345. Trend remains bullish in the medium-term. Important long-term resistance is at $1,350.

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Orange rectangle – support area

Gold price has made a sharp rise off the $1,237 lows in past December and has reached the long-term resistance of $1,350. Price is expected to pull back towards the 38% Fibonacci retracement at least. Only a break below $1,260 could signal that a decline below $1,237 is possible.

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Blue line – long-term support

Magenta line -long-term resistance

Gold price has reached important resistance area. A rejection here is very possible. A lower high on a Daily basis here could signal a move lower even towards the long-term blue trend line support. The slope of the rise was very sharp and stopped right at the triangle resistance. I expect a pull back.

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

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