Gold Price Analysis: Signs of seller exhaustion but too early to call bull revival


  • 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.

Daily chart

4-hour chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price 1548.4
Today Daily Change 1.14
Today Daily Change % 0.07
Today daily open 1547.26
 
Trends
Daily SMA20 1523.39
Daily SMA50 1489.79
Daily SMA100 1496.35
Daily SMA200 1433.56
 
Levels
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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