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Home » Daily Technical Reports » GOLD Today Chart 26/02/2016

GOLD Today Chart 26/02/2016

Gold traded in a consolidative manner yesterday, staying between the 1222 (S1) support line and the resistance of 1250 (R1). Taking into account that the yellow metal is trading above the upper bound of the triangle formation that had been containing the price action from the 11th until the 24th of February, I still see a positive near-term outlook and I would expect the bulls to aim for another test at 1250 (R1). A decisive break above that hurdle is possible to set the stage for extensions towards the 1265 (R2) barrier, marked by the peak of the 11th of February. Both our short-term oscillators stand within their bullish territories, but they point sideways. These indicators confirm yesterday’s consolidative mode. Switching to the daily chart, I see that on the 4th of February, the price broke above the long-term downside resistance line taken from the peak of the 22nd of January 2015. As a result, I would consider the medium-term outlook to be positive as well. I would treat the aforementioned triangle as a brief pause of the prevailing uptrend.GOLD 26

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