Technical analysis of Gold for September 21, 2016

Wild swings in Gold price after the BOJ are testing both support and resistance. Currently Gold price is breaking above the latest short-term high after successfully testing short-term support at $1,308. Price has now the potential for an upside move at least towards $1,330.

Gold price is expected to test at least the lower cloud boundary at $1,325 but with more probable target the upper cloud boundary and 161.8% extension of the first leg up. Short- and medium-term support is at $1,300. Gold is giving us bullish reversal signs as it has stopped making lower lows and lower highs.

Red lines - trading range

Gold price has touched the lower cloud boundary on the daily chart and is bouncing higher towards the daily resistance by the tenkan-sen at $1.325. A daily close above $1,330 will open the way for a push even higher towards $1,350. A break below $1,300 will open the way for a push towards $1,200-$1,180.

The material has been provided by InstaForex Company - www.instaforex.com

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