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Gold Technical Analysis for December 22, 2015

Chart setups:
Gold has finally broken above its channel resistance line and has subsequently taken out initial resistance at $1,178.00 levels as well. The long positions taken earlier worked out to be well and a corrective drop can be expected now towards $1,060.00 levels, before the rally could resume. Please note that the back side of channel line resistance would provide support around $1,067.00 levels now. Also, the probability of an extended rally towards $1,120.00/30.00 levels remains high, after a dip though. Immediate support is seen at $1,067.00 levels, followed by $1,060.00 levels (fibonacci 0.618) and lower while resistance is seen at $1,090.00 levels and higher respectively. The RSI has also moved south through the 70 levels, which indicates possibility of a corrective drop.
Trading recommendations:
Take partial profits now. Look to again go long around $1,060.00 levels.
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