Gold Technical Analysis: Bears await a sustained break below 1-month old trend-line support

Haresh Menghani FXStreet

• The precious metal remained under some heavy selling pressure for the third consecutive session on Friday and dropped to challenge one-month-old trend-line support.

• Sustained weakness below 200-period SMA on the 4-hourly chart - for the first time since Nov. 30, was seen as a key trigger for bearish traders and prompted some technical selling.

• Moreover, oscillators on the daily chart have just started gaining negative momentum and support prospects for an extension of the ongoing slide from 10-month tops set on Feb. 20.

• Meanwhile, indicators on hourly charts have started drifting into the oversold territory and turned out to be the only factor that helped limit deeper losses, at least for the time being.

• Traders, however, are likely to wait for a convincing break through the mentioned support before positioning for any further slide towards testing the key $1300 psychological mark.

Gold 4-hourly chart

XAU/USD

Overview:
    Today Last Price: 1308.86
    Today Daily change %: -0.32%
    Today Daily Open: 1313.1
Trends:
    Daily SMA20: 1319.67
    Daily SMA50: 1300.1
    Daily SMA100: 1264.15
    Daily SMA200: 1235.92
Levels:
    Previous Daily High: 1327.1
    Previous Daily Low: 1312.9
    Previous Weekly High: 1346.85
    Previous Weekly Low: 1320.72
    Previous Monthly High: 1346.85
    Previous Monthly Low: 1300.1
    Daily Fibonacci 38.2%: 1318.32
    Daily Fibonacci 61.8%: 1321.68
    Daily Pivot Point S1: 1308.3
    Daily Pivot Point S2: 1303.5
    Daily Pivot Point S3: 1294.1
    Daily Pivot Point R1: 1322.5
    Daily Pivot Point R2: 1331.9
    Daily Pivot Point R3: 1336.7

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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