FX.co ★ Technical analysis of Gold for May 16, 2016

Gold remains supported and mainly moves sideways in a neutral range between $1,290 and $1,250. A breakout above or below this range will push the price towards $1,350 or $1,190 respectively.

Black line - resistance trend line

Gold is trading again above the Kumo on the 4-hour chart but below the black trendline and with the stochastic oscillator diverging. $1,262 is an important short-term support. If broken, we will test $1,250. On the other hand, a 4-hour candle close above $1,285 will improve the chances of a continuation of the bullish trend.

The weekly chart remains fragile as the stochastic and the RSI are diverging. The price holds above $1,250 (tenkan-sen red line indicator). I expect Gold to move towards the Ichimoku cloud near the $1,190-70 area. This is also where the weekly kijun-sen (yellow line indicator) is found.