Gold technical analysis: Under pressure after bearish outside day, eyes sub-$1,500 levels
|- Gold is flashing red after Friday's bearish outside day candle.
- The 4-hour chart shows the rising channel breakdown and bearish indicator divergence.
Gold is currently trading at $1,508 per Oz, representing a 0.29% drop on the day.
The yellow metal created a bearish outside day candlestick pattern on Friday, which occurs when the trading range engulfs preceding trading day's high and low.
That candlestick pattern is considered an early sign of bullish-to-bearish trend change, especially if it appears following a notable rally, which is the case here.
Further, the 4-hour chart shows a bearish divergence of the relative strength index (RSI) and a rising channel breakdown.
Hence, a pullback to the Aug. 13 low of $1,480 looks likely. The bearish case would weaken if prices find acceptance above Friday's high of $1,528.
Daily chart
4-hour chart
Trend: Pullback likely
Pivot points
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.