Gold Technical Analysis: At lowest since Dec. 27, 4H RSI oversold

Omkar Godbole FXStreet Contributor

Gold is currently trading at $1,271, the lowest level since Dec. 27.

The drop to 3.5-month lows bolsters the already bearish technical setup on the daily chart.

The metal, therefore, appears on track to test support at $1,263 (trendline rising from August and November lows), albeit after a minor bounce, as the 4-hour chart relative strength (RSI) looks to be creating a higher low (bullish divergence).

4-hour chart

As seen above, the latest 3.5-month low on price isn’t confirmed by the RSI, which could end up creating a higher low if price sees a minor bounce.
The bullish divergence, if confirmed, would open the doors for a minor bounce to $1,280.

Trend: Minor bounce likely

XAU/USD

Overview
Today last price	1271
Today Daily Change	-1.60
Today Daily Change %	-0.13
Today daily open	1273.8

Trends
Daily SMA20	1296.46
Daily SMA50	1304.69
Daily SMA100	1289.5
Daily SMA200	1248.72

Levels
Previous Daily High	1279.7
Previous Daily Low	1272.1
Previous Weekly High	1310.7
Previous Weekly Low	1288.7
Previous Monthly High	1327.8
Previous Monthly Low	1280.1
Daily Fibonacci 38.2%	1275
Daily Fibonacci 61.8%	1276.8
Daily Pivot Point S1	1270.7
Daily Pivot Point S2	1267.6
Daily Pivot Point S3	1263.1
Daily Pivot Point R1	1278.3
Daily Pivot Point R2	1282.8
Daily Pivot Point R3	1285.9

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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