Gold Technical Analysis: Bouncing off 200-hour MA

Omkar Godbole FXStreet Contributor

Gold is currently trading at $1,325, having tested the 200-hour moving average (Ma) support of $1,320 in the overnight trade.

Hourly chart

As seen above, the 14-hour relative strength index has pierced the descending trendline. So, the metal may revisit $1,330, although further gains look unlikely, as early signs of bearish reversal have emerged on a longer duration chart.

Daily chart

Gold fell 1.1 percent yesterday - the biggest single-day drop since Nov. 9 - confirming a bearish divergence of the 14-day RSI. The short-term bearish reversal, however, would fail if the metal closes today above the ascending 5-day MA, currently at $1,330.

Trend: bearish

1. R3 1353.49
2. R2 1347.48
3. R1 1335.71
PP 1329.71
1. S1 1317.93
2. S2 1311.93
3. S3 1300.15

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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