Technical Outlook GOLD 17.05.2017

Technical Outlook GOLD 17.05.2017

GOLD

Spot Gold accelerated further up on Wednesday, driven by weaker dollar and political uncertainty in the US, extending recovery leg off $1214 low into fifth consecutive day.
Today’s bullish acceleration probes through a cluster of strong barriers at $1245/47 zone, consisting of daily cloud / Fibo 38.2% of $1295/$1214 descend and converging 55 / 200 and 20SMA’s.
Sustained break higher is expected to generate strong bullish signal for extension towards next targets at $1250 and $1254 (daily Kijun-sen / 50% retracement).
Daily technical studies are turning into firmer bullish mode, complemented by dollar-negative fundamentals and rising demand for safe haven assets on political crisis in the US that may further inflate gold’s price.
However, hesitation at key $1245/47 resistance zone could be expected, with the notion supported by overbought slow stochastic (without firmer bearish signal for now).
Top of thick 4-hr cloud top at $1242 marks immediate support, followed by 4-hr Tenkan-sen at $1240 and session low at $1236, reinforced by rising 4-hr Kijun-sen line, above which corrective dips should be contained.

Res: 1250; 1254; 1260; 1264
Sup: 1245; 1242; 1240; 1236