Gold technical analysis: Remains confined in a one-week-old trading range
|- Attempted move up struggles to sustain above 200-hour SMA
- Set-up warrants some caution before placing aggressive bets.
Gold edged higher and refreshed daily tops during the early North-American session, albeit remained well within a broader trading range held over the past one week or so.
The recent range-bound trading action constituted towards the formation of a rectangle on the 1-hourly chart, suggesting indecision over the commodity's near-term direction.
Given that the precious metal has repeated failed to sustain/build on attempted intraday positive moves beyond 200-hour SMA, the set-up seems tilted in favour of bearish traders.
Meanwhile, neutral oscillators on hourly/daily charts haven't been supportive of any firm near-term direction and warrant some caution before placing aggressive bets.
Hence, it will be prudent to wait for a sustained break below the $1476-74 support, below which the fall could get extended towards monthly swing lows – around the $1459 region.
On the flip side, a sustained move beyond the trading range resistance, near the $1496-97 region, should pave the way for a move back towards the $1510-12 heavy supply zone.
Gold 1-hourly chart
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