Gold Technical Analysis: Corrective rally is stalling
|- Gold's corrective rally from the 12-month low of $1,211 is running out of steam.
- The yellow metal has created a rising wedge-like pattern on the hourly chart and the 14-hour relative strength index (RSI) has rolled over from the overbought territory.
- Hence, a minor price pullback could be in the offing before technical recovery gains more ground, as indicated by the bullish price-RSI and bullish price-stochastic divergence.
Hourly chart
Current price: $1,232
Daily High: $1,235
Daily Low: $1,230
Trend: Pullback to be short-lived
R1: $1,235 (200-hour moving average)
R2: $1,238 (July 3 low)
R3: $1,245 (July 17 high hurdle on the hourly chart)
Support
S1: $1,227 (100-hour moving average)
S2: $1,224.50 (rising wedge support + 50-hour moving average)
S3: $1,211 (July 19 low)
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