Gold Price Analysis: Monday's spinning top suggests buyer exhaustion

Monday's spinning top candle is reflective of bull fatigue.
Bulls need to defend Monday's low of $1,657.

Omkar Godbole FXStreet Contributor

Gold printed a seven-year high of $1,703 on Monday but closed the day with a spinning top candle, signaling buyer indecision in the market.

A bearish reversal would be confirmed if prices close Tuesday under $1,657 (Monday's low), validating the spinning top candle and the bearish divergence of the 14-day relative strength index.

A bearish close would open the doors for a pullback to key average support near $1,640. A violation there would expose the psychological support at $1,600 (10-week average).

On the higher side, a close above the spinning top's high of $1,703 would indicate a continuation of the uptrend. At press time, the yellow metal is trading at $1,670 per Oz, representing a 0.4% drop on the day.

Daily chart

Trend: Bull exhaustion

Technical levels

XAU/USD

Overview
Today last price	1670
Today Daily Change	-11.35
Today Daily Change %	-0.68
Today daily open	1680.76

Trends
Daily SMA20	1619.22
Daily SMA50	1583.47
Daily SMA100	1531.3
Daily SMA200	1493.76

Levels
Previous Daily High	1703.4
Previous Daily Low	1657.57
Previous Weekly High	1692.34
Previous Weekly Low	1575.58
Previous Monthly High	1689.4
Previous Monthly Low	1547.56
Daily Fibonacci 38.2%	1685.89
Daily Fibonacci 61.8%	1675.08
Daily Pivot Point S1	1657.75
Daily Pivot Point S2	1634.75
Daily Pivot Point S3	1611.92
Daily Pivot Point R1	1703.58
Daily Pivot Point R2	1726.41
Daily Pivot Point R3	1749.41

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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