Technical analysis of gold for October 04, 2017

Gold price has broken out of the downward sloping triangle pattern. Both RSI indicators have suggested that a bounce was imminent. Minimum target for the bounce is the $1,295 area.

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Black line - resistance

Blue lines - bullish divergence signs

Gold price has broken above the triangle pattern and is bouncing towards the Ichimoku cloud resistance of $1,288. Support is at $1,268 now and if broken we should expect a move towards $1,260-50. Trend remains bearish as long as price is below $1,316.

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On a daily basis we have the first signs of a possible 20$ bounce towards $1,298. There are bullish divergence signs in the RSI and I do not expect to see Gold price trading near the lows for much longer. The $1,300 level is expected to be tested again.The material has been provided by InstaForex Company - www.instaforex.com