Gold Technical Analysis: Below 200-bar SMA inside monthly rising trend-channel
|- Gold prices fail to extend the latest pullback beyond 200-bar SMA.
- 50% Fibonacci retracement and the channel’s upper line add to the resistances.
- Late-November top, channel’s lower line keep declines in check.
Gold prices again step back from 200-bar Simple Moving Average (SMA) while declining to $1,475.60 ahead of Friday’s European session. The yellow metal also follows a one-month-old rising channel formation.
With this, the quote is likely to retest 38.2% Fibonacci retracement of November month drop, at $1,472.30 whereas late-November high around $1,466.60 and the channel’s support close to $1,456.30 could question sellers next.
If prices keep trading southwards below $1,456, the previous month low near $1,445 will return to the chart.
Meanwhile, a 50% Fibonacci retracement level of $1,480.50 acts as intermediate halt during the Bullion’s rise from 200-bar SMA, at $1,477 now, to the channel’s resistance close to $1,485.
Given the quote’s rally beyond $1,485, 61.8% Fibonacci retracement level of $1,488.75 and November 06 high around $1,494 could become buyers’ favorite.
Gold four-hour chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.