• Gold's daily chart suggests pullback from record highs has run out of steam. 
  • A break above Wednesday's high is needed to confirm bullish reversal. 

Gold is currently trading around $1,938 per ounce, representing a 1.2% gain on the day. Prices have recovered 4% from the low of $1,863 reached on Wednesday. 

Even so, it is too early to call a bullish revival. That's because the yellow metal is yet to rise above $1,950 - the high of Wednesday's spinning bottom candle. 

A spinning bottom candle occurs when an asset sees two-way business but ends the day with marginal to moderate gains or losses. It is widely considered a sign of indecision in the market place. 

In gold's case, however, it could be taken as a sign of seller exhaustion, given it has appeared following a notable pullback from $2,075 to $1,863 and marks a bear failure to penetrate the ascending trendline connecting March 20 and June 5 lows. 

As such, a close above Wednesday's high of $1,950 is needed to confirm a bullish revival. That will likely invite stronger chart-driven buying, yielding a break above $2,000. 

On the downside, support is located at $1,913 (Asian session low) and $1,900 (psychological support). 

Daily chart

Trend: Bullish above $1,950

Technical levels

XAU/USD

Overview
Today last price 1937.23
Today Daily Change 21.15
Today Daily Change % 1.10
Today daily open 1916.08
 
Trends
Daily SMA20 1936.02
Daily SMA50 1829.7
Daily SMA100 1762.07
Daily SMA200 1649.62
 
Levels
Previous Daily High 1949.4
Previous Daily Low 1863.24
Previous Weekly High 2075.32
Previous Weekly Low 1960.67
Previous Monthly High 1984.8
Previous Monthly Low 1757.7
Daily Fibonacci 38.2% 1916.49
Daily Fibonacci 61.8% 1896.15
Daily Pivot Point S1 1869.75
Daily Pivot Point S2 1823.41
Daily Pivot Point S3 1783.59
Daily Pivot Point R1 1955.91
Daily Pivot Point R2 1995.73
Daily Pivot Point R3 2042.07

 

 

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