Gold technical analysis: Bullish flag pattern spotted on 1-hourly chart

Haresh Menghani FXStreet

• Gold failed to capitalize on the overnight strong up-move to weekly tops and has been retreating along a descending trend-channel formation on the 1-hourly chart.

• Given this week's goodish bounce from near three-week lows, the mentioned channel constitutes towards the formation of a bullish continuation - flag chart pattern.

The lower end of the descending trend-channel coincides with 200-hour EMA support and should act as a key pivotal point for intraday traders. Failure to defend the said confluence support would negate the bullish set-up and accelerate the slide back towards a horizontal resistance break-point around the $1278-77 region.

Meanwhile, technical indicators on hourly charts maintained their bullish bias and have also recovered from the negative territory on the daily chart. A convincing break through trend-channel resistance, and a subsequent move beyond the overnight swing high, around the $1286 area will further credence to the constructive outlook.

On a sustained move beyond the mentioned barriers, the commodity seems all set to extend the positive momentum further towards reclaiming the key $1300 psychological mark before aiming to surpass monthly swing highs, near the $1303 region.

Gold 1-hourly chart

XAU/USD

Overview
Today last price	1282.83
Today Daily Change	0.90
Today Daily Change %	0.07
Today daily open	1281.93

Trends
Daily SMA20	1283.14
Daily SMA50	1289.73
Daily SMA100	1296.7
Daily SMA200	1259.44

Levels
Previous Daily High	1287.3
Previous Daily Low	1271.86
Previous Weekly High	1311.8
Previous Weekly Low	1275.09
Previous Monthly High	1310.7
Previous Monthly Low	1265.6
Daily Fibonacci 38.2%	1281.4
Daily Fibonacci 61.8%	1277.76
Daily Pivot Point S1	1273.43
Daily Pivot Point S2	1264.93
Daily Pivot Point S3	1258
Daily Pivot Point R1	1288.86
Daily Pivot Point R2	1295.8
Daily Pivot Point R3	1304.3

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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