Gold technical analysis: 61.8% Fibo limits immediate upside amid bullish MACD


  • Gold holds on to recovery gains above 50% Fibonacci retracement.
  • Bullish MACD indicates further upside.
  • A break of 61.8% Fibonacci retracement will recall late-September highs.

With the sustained trading beyond 50% Fibonacci retracement of September-October upside, Gold is now gearing up to confront another key resistance while taking the bids to $1,514 during the initial Asian session on Monday.

In doing to 61.8% Fibonacci retracement level of $1,519 will be the first, and the key, to watch for, a break of which could escalate the recent recovery towards late-September high near $1,535.

It’s worth mentioning that 12-bar Moving Average Convergence and Divergence (MACD) is indicating a bullish signal and hence further upside to the key resistance seems quite an expected outcome.

Should there be further upside beyond $1,535, $1,550 and September month high close to $1557/58 will appear on buyers’ radar.

Meanwhile, a downside break below 50% Fibonacci retracement level of $1,506 highlights the importance of a 200-bar Simple Moving Average (SMA) level of $1,498 and a monthly rising trend line around $1,484.

During the metal’s declines under $1,484, $1,478 and the previous month low surrounding $1,455 could lure sellers.

Gold 4-hour chart

Trend: pullback expected

    1. R3 1530.43 
    2. R2 1522.91 
    3. R1 1518.65 
  1. PP 1511.13
    1. S1  1506.87
    2. S2  1499.35
    3. S3  1495.09

 

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