Gold Price Analysis: Probes pennant resistance

Gold pushed against the top end of the multi-week pennant pattern.
A breakout would signal a revival of the bull run from November lows.

Omkar Godbole FXStreet Contributor

Gold tested key resistance a few minutes ago, which, if breached, could accelerate the broader uptrend that has been in place since November.

The yellow metal ran into $1,584 – the top end of the pennant pattern (series of lower highs and higher lows) created over the last 6 weeks.

A pennant breakout would be confirmed if prices close Monday above $1,584, signaling a continuation of the rally from the Nov. 26 low of $1,463 and open the doors for a test and possible break above the recent high of $1,611.

Alternatively, if the yellow metal dives out of the narrowing price range, the sellers would regain control and could push the shiny metal down to $1,536 (pennant low), under which major support is seen at $1,500.

At press time, an ounce of gold is changing hands at $1,582.

Daily chart

Trend: Neutral

Technical levels

XAU/USD

Overview
Today last price	1582
Today Daily Change	0.17
Today Daily Change %	0.01
Today daily open	1582.62

Trends
Daily SMA20	1569.95
Daily SMA50	1536.68
Daily SMA100	1509.2
Daily SMA200	1466.39

Levels
Previous Daily High	1584.36
Previous Daily Low	1573.14
Previous Weekly High	1584.36
Previous Weekly Low	1561.99
Previous Monthly High	1611.53
Previous Monthly Low	1517.1
Daily Fibonacci 38.2%	1580.07
Daily Fibonacci 61.8%	1577.43
Daily Pivot Point S1	1575.72
Daily Pivot Point S2	1568.82
Daily Pivot Point S3	1564.5
Daily Pivot Point R1	1586.94
Daily Pivot Point R2	1591.26
Daily Pivot Point R3	1598.16

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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