Gold Price Analysis: Recovery rally looks exhausted on Hanging Man candle

Gold's weekly chart is flashing signs of bull fatigue.
A move above the preceding week's high is needed to revive the bullish view.

Omkar Godbole FXStreet Contributor

Gold's recovery rally from the March low of $1,451 looks exhausted, according to last week's inside bar hanging man candle.

An inside bar occurs when prices trading within the preceding period's high and low and is indicative of bull fatigue when it appears after a notable price rise, which is the case here. The hanging man candle, which comprises a small red body and a long lower wick, also indicates buyer exhaustion.

As a result, a pullback to $1,600 or lower could be seen this week. At press time, the yellow metal is sidelined around $1,619 per ounce.

On the higher side, a move above the previous week's high of $1,638 is needed to revive the bullish setup and open the doors to a re-test of $1,700.

Weekly chart

Trend: Neutral

Technical levels

XAU/USD

Overview
Today last price	1620.64
Today Daily Change	2.42
Today Daily Change %	0.15
Today daily open	1618.22

Trends
Daily SMA20	1582.5
Daily SMA50	1592.91
Daily SMA100	1548.81
Daily SMA200	1514.05

Levels
Previous Daily High	1626.17
Previous Daily Low	1606.62
Previous Weekly High	1636.13
Previous Weekly Low	1568.46
Previous Monthly High	1703.27
Previous Monthly Low	1451.3
Daily Fibonacci 38.2%	1618.7
Daily Fibonacci 61.8%	1614.09
Daily Pivot Point S1	1607.84
Daily Pivot Point S2	1597.45
Daily Pivot Point S3	1588.29
Daily Pivot Point R1	1627.39
Daily Pivot Point R2	1636.55
Daily Pivot Point R3	1646.94

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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