Technical analysis of gold for May 9, 2018

Gold price remains below the short-term resistance of $1,320 and above the short-term support and reversal area of $1,300. At current levels I'm bullish on gold. The downside is limited. A break above $1,319 will be the first bullish reversal confirmation.

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Red line - horizontal support

The price bounced off the 50% Fibonacci retracement. The short-term resistance at $1,319-20 must be broken for the bigger bounce we expect to start. Until then we are in danger of making a new lower low towards $1,295. As said above, downside is limited and I'm a buyer of gold at current levels and lower for at least a move towards $1,330.

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