Gold Technical Analysis: $1,279 is the level to beat for the bears

Omkar Godbole FXStreet Contributor

The bearish view put forward by the range breakdown last Friday would gain credence if the yellow metal confirms flag breakdown with a move below $1,279.

4-hour chart

As seen above, the yellow metal has charted a bear flag on the 4-hour chart; a bearish continuation pattern; which often accelerates the preceding bearish move.

Put simply, a drop below $1,279 (flag support) would open up downside toward $1.261 (target as per the measured move method, that is, pole height subtracted by breakout price). Notably, the flag breakdown could happen soon as the yellow metal is on the defensive, having witnessed a contracting triangle breakdown earlier this month.

Trend: bearish

XAU/USD

Overview:
    Today Last Price: 1283.56
    Today Daily change: 0.44 pips
    Today Daily change %: 0.03%
    Today Daily Open: 1283.12
Trends:
    Daily SMA20: 1285.78
    Daily SMA50: 1256.99
    Daily SMA100: 1235.46
    Daily SMA200: 1228.62
Levels:
    Previous Daily High: 1286.52
    Previous Daily Low: 1278.7
    Previous Weekly High: 1295.9
    Previous Weekly Low: 1276.2
    Previous Monthly High: 1284.7
    Previous Monthly Low: 1221.39
    Daily Fibonacci 38.2%: 1281.69
    Daily Fibonacci 61.8%: 1283.53
    Daily Pivot Point S1: 1279.04
    Daily Pivot Point S2: 1274.96
    Daily Pivot Point S3: 1271.22
    Daily Pivot Point R1: 1286.86
    Daily Pivot Point R2: 1290.6
    Daily Pivot Point R3: 1294.68

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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