Gold technical analysis: Price rejected through prior resistance but holds in 1500s
|- The 4-hour 200 moving average at 1,510 which continues to hold.
- Bears can target a 50% mean reversion of the late June swing lows to recent highs.
The price of gold is soft in the open this week as trade talk noise continued to dominate. Gold has fallen from a high of 1516.69 to a low of 1511.89 and is currently trading -0.18% on the session so far, falling back towards the prior trendline resistance.
The recent resistance was pierced on Friday with a higher high in the 1,500s and closing above the 4-hour 200 moving average at 1,510 which continues to hold in Asia today. On a continuation to the upside, bulls will target the 1550 level which guards territories towards 1,590 as the 127.2% Fibo target area. Bears can target a 50% mean reversion of the late June swing lows to recent highs around 1470 could be on the cards which guards the 19 July swing highs at 1,452.93.
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