Gold technical analysis: Bears look for a break below the trendline support

Ross J Burland FXStreet

Trendline support guards a 50% mean reversion of the late June swing lows to recent highs target.
Bulls look for a close above the 1500 level ahead of the 1520 level.

Technically, the price had been sent lower below the 21 and 50-day moving averages converging and the 7th Oct lows. Trendline support guards a test of a 50% mean reversion of the late June swing lows to recent highs around 1480 will be encouraged. Failures here will open the early August lows down at 1400 the figure. On the upside, bulls seek closes above the 1500 level ahead of the 1520 level and the1535 resistance target.

Daily gold chart

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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