Gold Price Analysis: XAU/USD raises a bear flag on the 4-hour chart


  • Gold gains ground in Asia as the US 10-year yield extends overnight drop. 
  • The metal looks to be charting a bear flag downside continuation pattern.

Gold is currently trading near $1,860 per ounce, representing a 0.37% gain on the day. 

The bounce from Monday's one-month low of $1,816 has taken the shape of a bear flag pattern on the 4-hour chart. A bear flag is a pause that often refreshes lower, recharging bears' engines for a more profound decline. 

A move below the lower end of the flag, currently at $1,840, would confirm a breakdown and imply a continuation of the decline from the Jan. 6 high of $1,959. The immediate support is seen at $1,816 ad $1,800. 

A convincing move above the hourly chart resistance of $1,870 would invalidate the bearish setup. 

4-hour chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price 1859.88
Today Daily Change 3.96
Today Daily Change % 0.21
Today daily open 1855.92
 
Trends
Daily SMA20 1885.9
Daily SMA50 1866.92
Daily SMA100 1890.73
Daily SMA200 1841.42
 
Levels
Previous Daily High 1863.83
Previous Daily Low 1836.74
Previous Weekly High 1959.42
Previous Weekly Low 1828.27
Previous Monthly High 1906.87
Previous Monthly Low 1775.52
Daily Fibonacci 38.2% 1853.48
Daily Fibonacci 61.8% 1847.09
Daily Pivot Point S1 1840.5
Daily Pivot Point S2 1825.07
Daily Pivot Point S3 1813.41
Daily Pivot Point R1 1867.59
Daily Pivot Point R2 1879.25
Daily Pivot Point R3 1894.68

 

 

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