Gold Technical Analysis: Bearish continuation pattern spotted on 4-hourly chart
|• The precious metal, over the past one month or so, has been oscillating between two converging trend-lines, forming a symmetrical triangle/pennant on the 4-hourly chart.
• The contracting wedge might be categorized as a continuation pattern, marking a consolidation phase before the resumption of the prior/well-established downtrend.
• Technical indicators on daily/hourly charts are yet to pick up positive momentum and add credence to the bearish formation, suggesting selling bias at higher levels.
• However, it would be prudent to wait for a convincing break below the pattern support, currently near the $1192 region, before positioning for a fresh leg of downfall.
Spot Rate: $1202.18
Daily Low: $1197.12
Trend: Bearish
Resistance
R1: $1203.97 (R1 daily pivot-point)
R2: $1211.06 (last Friday's swing high)
R3: $1214.32 (August month swing high)
Support
S1: $1197.12 (current day swing low)
S2: $1193.87 (S1 daily pivot-point)
S3: $1187.75 (monthly low set on Sept. 11)
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