FX.co ★ Technical analysis of Gold for May 6, 2016

Gold is showing signs of a short-term low in place and, combined with the NFP announcement today, we could see a bullish reversal and a push towards $1,300 again. The price is above the support levels, and this support could help bulls push the price higher.

Black line - previous low support

Blue line - trend line support

Gold is still above the Ichimoku cloud (Kumo), and the stochastic is turning upwards from oversold levels. We could see another push towards the $1,285 resistance today, and if this level is broken, we should expect new highs to come.

The weekly chart remains bullish as the price is above the tenkan-sen (red line indicator). The stochastic is oversold and diverging. The RSI is not diverging. A new high near $1,325 could be what we need in order to see a divergence in the RSI. I continue to believe that only short-term and aggressive traders should consider long positions now targeting $1,285 first and then $1,325. Otherwise I prefer to be neutral and wait for a deep pullback towards $1,150.