- Gold remains confined in a range for the second consecutive session on Tuesday.
- The technical set-up supports prospects for the emergence of some dip-buying.
- A convincing break below $1767-65 confluence support might negate bullish bias.
Gold extended its subdued/range-bound trading action for the second straight session on Tuesday, forming a rectangle on short-term charts.
A rectangle is usually considered as a continuation pattern that marks a brief pause in the trend (bullish in this case), though sometimes might point to significant tops. Nevertheless, the pattern is not complete until a breakout has occurred.
Meanwhile, technical indicators on the 1-hourly chart have just started drifting into the bearish territory. However, oscillators on 4-hourly/daily charts maintained their bullish bias and support prospects for the emergence of some dip-buying.
The precious metal seems all set to build on its recent appreciating move and aim back to retest multi-year tops, around the $1779-80 region set last Wednesday. The momentum could further get extended towards the ambitious $1800/ounce target.
That said, a convincing break below the rectangle support, around the $1767-65 region, which coincides with 100-hour SMA could prompt some long-unwinding trade. The commodity might then accelerate the slide back towards 200-hour SMA, around the $1755 region.
Gold 1-hourly chart
Technical levels to watch
|Today last price||1769.15|
|Today Daily Change||-3.41|
|Today Daily Change %||-0.19|
|Today daily open||1772.56|
|Previous Daily High||1776.13|
|Previous Daily Low||1765.8|
|Previous Weekly High||1779.41|
|Previous Weekly Low||1742.97|
|Previous Monthly High||1765.38|
|Previous Monthly Low||1670.72|
|Daily Fibonacci 38.2%||1772.18|
|Daily Fibonacci 61.8%||1769.75|
|Daily Pivot Point S1||1766.86|
|Daily Pivot Point S2||1761.17|
|Daily Pivot Point S3||1756.53|
|Daily Pivot Point R1||1777.19|
|Daily Pivot Point R2||1781.83|
|Daily Pivot Point R3||1787.52|
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