Gold Technical Analysis: Breakout confirmed on weekly, Doji on D1
|- Gold's weekly chart is reporting a bull flag breakout.
- The daily chart is signaling bullish exhaustion.
- The conflicting signals indicate a pullback may precede big gains.
Gold is currently trading at $1,515 per Oz, representing a 0.25% gain on the day.
The yellow metal closed last week with 2.22% gains at $1,511, confirming a flag breakout on the weekly chart.
The pattern indicates the pullback from September highs above $1,555 has ended and the rally from lows near $1,270 seen in April-May has resumed. The flag breakout has opened the doors for a retest of highs above $1,555.
The big gains, however, may not happen immediately, as Friday's Doji candle coupled with an above-70 reading on the 14-day relative strength index is signaling bullish exhaustion.
The metal may drop to the ascending 5-day moving average at $1,506. The bullish weekly chart outlook would be invalidated if prices find acceptance under the last week's low of $1,477.
Weekly chart
Daily chart
Trend: Bullish
Technical levels
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.