Technical analysis on Gold for May 3, 2018

Technical analysis on Gold for May 3, 2018

The Gold price is very close to making a bullish reversal. The Gold price is challenging the $1,300 support area. The bullish divergence signs imply that the bounce will come very soon. This is not the time to be bearish Gold. Gold price is expected to move towards $1,330-40 at least.
Blue parallel lines – bearish channel
Blue upward sloping line – bullish divergence
Yellow rectangle – target
Violet lines – expected move

The Gold price is trading below the Ichimoku cloud inside a bearish channel. Short-term resistance is at $1,314. A break above this level will be the first sign of a reversal. Confirmation will come on a break above $1,326. Strong resistance will then be tested around $1,330. Support is at $1,300-$1,295. The bullish divergence signs in the RSI imply that we should bounce soon.

 

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