Gold tests the channel’s resistance – Analysis - 05/10/2015

Gold price rallied strongly to the upside last Friday affected by the US American economic data, to hit the main bearish resistance that appears in the chart, noticing that the price kept its stability below this resistance, which keeps the expectation of the overall bearish trend valid until now, supported by stochastic enter to the overbought levels.

Therefore, we wait for bearish rebound that targets 1103.00 levels as a first main station. Reminding you that breaking this level will extend gold losses to reach 1082.60 then 1059.00, while the bearish trend will remain valid unless confirming breaching 1137.00 level.

Expected trading range for today is between 1115.00 support and 1150.00 resistance.

Expected trend for today: Bearish