Gold Price Analysis: Eyes re-test of the 2020 high on pennant breakout


  • Gold's daily chart shows a pennant breakout, a bullish continuation pattern. 
  • The metal could challenge the January high of $1,611. 

Gold jumped 1.32% on Tuesday, confirming an upside break of the six-week-long narrowing price range or the pennant pattern on the daily chart. 

The breakout indicates the rally from November lows near $1,445 has resumed. Tuesday's close also invalidated the bearish lower high of $1,593.90 established on Feb. 3. 

Additionally, the 5- and 10-day averages are trending north, indicating a strong upward momentum and the relative strength index has breached the descending trendline in favor of the bulls. 

All in all, the metal looks set to test the 2020 high of $1,611 reached on Jan. 8. The bullish case would be invalidated if prices find re-enter the pennant pattern with a drop below $1,580. 

At press time, an ounce of gold is changing hands at $1,603. 

Daily chart

Trend: Bullish

Technical levels

XAU/USD

Overview
Today last price 1603.62
Today Daily Change 0.84
Today Daily Change % 0.05
Today daily open 1602.78
 
Trends
Daily SMA20 1573.17
Daily SMA50 1541.84
Daily SMA100 1511.52
Daily SMA200 1469.31
 
Levels
Previous Daily High 1605.15
Previous Daily Low 1580.95
Previous Weekly High 1584.36
Previous Weekly Low 1561.99
Previous Monthly High 1611.53
Previous Monthly Low 1517.1
Daily Fibonacci 38.2% 1595.91
Daily Fibonacci 61.8% 1590.19
Daily Pivot Point S1 1587.44
Daily Pivot Point S2 1572.09
Daily Pivot Point S3 1563.24
Daily Pivot Point R1 1611.64
Daily Pivot Point R2 1620.49
Daily Pivot Point R3 1635.84

 

 

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