Gold Technical Analysis: Bears await a convincing breakthrough descending triangle support

Haresh Menghani FXStreet

• The precious metal extended overnight rejection slide from one-week-old descending trend-line resistance and dropped to test an important horizontal support near $1220 level.

• A follow-through selling below the mentioned support will mark a near-term bearish breakthrough a descending triangular formation on the 1-hourly chart and add to the selling pressure.

• Technical indicators on hourly charts have started gaining negative momentum, and have also started losing traction on the daily chart, and thus, support prospects for an eventual breakdown.

Gold 1-hourly chart

XAU/USD

Overview:
    Today Last Price: 1220.87
    Today Daily change: -1.3e+2 pips
    Today Daily change %: -0.107%
    Today Daily Open: 1222.18
Trends:
    Previous Daily SMA20: 1218.96
    Previous Daily SMA50: 1218.56
    Previous Daily SMA100: 1207.46
    Previous Daily SMA200: 1236.43
Levels:
    Previous Daily High: 1228.04
    Previous Daily Low: 1221.4
    Previous Weekly High: 1230.3
    Previous Weekly Low: 1217.7
    Previous Monthly High: 1243.43
    Previous Monthly Low: 1182.54
    Previous Daily Fibonacci 38.2%: 1223.93
    Previous Daily Fibonacci 61.8%: 1225.5
    Previous Daily Pivot Point S1: 1219.71
    Previous Daily Pivot Point S2: 1217.24
    Previous Daily Pivot Point S3: 1213.07
    Previous Daily Pivot Point R1: 1226.34
    Previous Daily Pivot Point R2: 1230.51
    Previous Daily Pivot Point R3: 1232.98

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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