Gold Technical Analysis: Path of least resistance is to the downside
|- The stacking order of the three major MAs (50-hour below 100-hour below 200-hour) indicates the path of least resistance is to the downside.
- However, yesterday's doji candle signaled indecision in the marketplace. Hence, today's close is pivotal.
- A short-term bull reversal would be confirmed if prices close today above previous day's high of $1,182. On the other hand, a close below $1160.37 (previous day's low) would only bolster the already bearish technical setup.
Hourly chart
Daily chart
Current Price: $1,176
Daily High: 1,179.30
Daily Low: $1,172
Trend: Neutral
R1: $1,182 (5-day MA)
R2: $1,191 (resistance as per the hourly chart)
R3: $1,300 (psychological hurdle)
Support
S1: $1,171.60 (session low)
S2: $1,160.06 (Aug. 16 low)
S3: $1,142 (March 2015 low)
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