Gold technical analysis: 21/50-HMA, 5-day old support-line limit immediate declines

Technical indicators seem losing positive momentum, but strong downside supports question the declines.
An upside clearance of $1438.65/1440 becomes necessary to aim for May 2013 high around $1474.

Anil Panchal FXStreet

Even if oscillators like RSI and MACD are losing momentum on a shorter timeframe chart of Gold, strong supports on the south limits the yellow metal’s declines as it trades near $1418 during early Friday.

Among the supports, the confluence region of 21 and 50-hour moving averages (HMA) close to $1410/11 appears the first challenge to sellers, a break of which highlights the importance of 5-day old support-line, at $1396.

Given the price drop beneath $1396, bears can aim for $1382 and 50% Fibonacci retracement level of $1354.

Meanwhile, bulls’ ignorance to 14-bar relative strength index (RSI) and 12-bar moving average convergence divergence (MACD) histogram can push them towards $1338.65/40 area that holds the key for the bullion’s run-up to May 2013 high around $1474.

Gold hourly chart

Trend: Bullish

1. R3 1436.89
2. R2 1430.14
3. R1 1423.92
PP 1417.18
1. S1 1410.96
2. S2 1404.21
3. S3 1397.99

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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