- Gold's Tuesday's candle indicates seller exhaustion, but lower highs setup still intact.
- Short-term average studies have turned bearish and prices risk falling back to $1,540.
Gold is currently trading at $1,548 per Oz, having clocked a low of $1,536 on Tuesday.
The long wick attached to Tuesday's candle indicates seller exhaustion, meaning the corrective pullback from the six-year high of $1,611 reached on Jan. 8 has likely ended.
Even so, it is too early to call a bull reversal, as the lower highs pattern is still intact on the 4-hour chart. A move above $1,563 is needed to invalidate the lower highs set up and confirm a bullish revival.
A move above $1,563 may not happen on Wednesday, as the 5- and 10-day averages have produced a bearish crossover and the 5-day average hurdle is proving a tough nut to crack in Asia.
So, despite the bullish divergence of the 4-hour chart MACD, the metal appears on track to re-test $1,540. That said, prices could challenge the 10-day average hurdle at $1,543 before a potential slide to $1,540.
|Today last price||1548.4|
|Today Daily Change||1.14|
|Today Daily Change %||0.07|
|Today daily open||1547.26|
|Previous Daily High||1549.39|
|Previous Daily Low||1536.35|
|Previous Weekly High||1611.3|
|Previous Weekly Low||1540.3|
|Previous Monthly High||1525.1|
|Previous Monthly Low||1454.05|
|Daily Fibonacci 38.2%||1541.33|
|Daily Fibonacci 61.8%||1544.41|
|Daily Pivot Point S1||1539.27|
|Daily Pivot Point S2||1531.29|
|Daily Pivot Point S3||1526.23|
|Daily Pivot Point R1||1552.31|
|Daily Pivot Point R2||1557.37|
|Daily Pivot Point R3||1565.35|
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