Gold technical analysis: 100-HMA triggers the U-turn towards $1421

Oversold RSI, 100-HMA pull the Gold prices back towards immediate horizontal resistance.
$1382 and 200-HMA should gain market attention during the fresh downpour.

Anil Panchal FXStreet

Gold is on a run towards near-term horizontal-resistance following its U-turn from the 100-hour moving average (HMA) ticks it up to $1407.80 ahead of the European open on Wednesday.

While multiple extremes marked during last two-days highlight $1421 as the key resistance, 23.6% Fibonacci retracement of the bullion’s rise since June 17, at $1413.56, may serve as the closest upside barrier.

During the precious-metal’s extended recovery beyond $1421, latest high around $1438.66 and the April 2013 top near $1488 can become bull’s favorites.

It is worth noting that the 14-bar relative strength index (RSI) recently bounced off the oversold territory.

Alternatively, a downside break of $1405 HMA support can take halt around Friday’s bottom surrounding $1382 ahead of visiting an area comprising 200-HMA and 61.8% Fibonacci retracement near $1373/75.

If at all the quote keep trading southwards beneath $1373, $1362 and $1348 might lure the sellers.

Gold hourly chart

Trend: Bullish

1. R3 1463.84
2. R2 1451.25
3. R1 1437.37
PP 1424.78
1. S1 1410.91
2. S2 1398.32
3. S3 1384.44

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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