Gold Technical Analysis: Bull trap

The 15-minute chart shows gold (XAU/USD) has ended consolidation with an upside break (bullish breakout).
However, overbought readings in relative strength index (RSI) suggests the breakout could turn into a bull trap.
The 15-minute chart also shows a doji candle, signaling indecision despite a bullish breakout.

Omkar Godbole FXStreet Contributor

15-minute chart

Current price: $1,283

Daily High: $1,283.81

Daily Low: $1,280.60

Trend: Bull trap

Resistance

R1: $1,285 (50-hour moving average)

R2: $1,289 (5-day moving average)

R3: $1,293 (10-day moving average)

Support

S1: $1,282 (May 21 low)

S2: $1,275 (Friday's low + 100-week moving average)

S3: $1,260.59 (October 2017 low)

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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