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FX.co ★ Technical analysis of gold for February 16, 2017

Technical analysis of gold for February 16, 2017

Gold made a very bullish reversal yesterday. Despite falling towards $1,216, support was briefly broken but buyers stepped back in despite Dollar strength and supported the price. Moreover, the price continued higher and closed above $1,228-33 area where it is trading now.

Technical analysis of gold for February 16, 2017

Red line - resistance (broken)

Black line - support

Gold has broken again above the 4-hour Kumo (cloud) resistance. The price has also broken out of the descending triangle pattern. It made a big reversal at noon when it was trading around $1,216. Gold is very resilient and all pullbacks are bought and heavily supported. We might see a back test of the broken red trendline but overall I expect Gold to push towards $1,280-$1,320 soon.

Technical analysis of gold for February 16, 2017

Black line - long-term resistance

The weekly candle is shaping up to be a very bullish one as we can see a long lower tail shadow suggesting that the price is heavily supported and pushed higher despite selling pressures. The price is holding inside the weekly Kumo (cloud) and is testing the weekly kijun-sen (yellow line indicator). I expect gold breaks above it and will move towards the upper cloud boundary and the long-term trendline resistance.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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