Gold Technical Analysis: Bulls await a convincing breakthrough $1216-17 strong barrier

Haresh Menghani FXStreet

• The precious metal traded with a mild positive bias for the fourth consecutive session on Friday, albeit seemed struggling to build on its positive move beyond the $1216-17 strong resistance.

• The mentioned hurdle, representing 50% Fibonacci retracement level of $1237-$1196 recent downfall and nearing 200-hour SMA, has been capping the up-move over the past three trading session.

• Meanwhile, technical indicators on the daily chart are yet to catch up with the recent up-move, albeit remained supportive for a follow-through positive momentum on the hourly chart.

• Hence, it would be prudent to wait for a convincing breakthrough the mentioned $1216-17 barrier before traders start positioning for any subsequent appreciating move in the near-term.

• Alternatively, a rejection slide from the current resistance zone is likely to prompt some fresh weakness back towards 100-hour SMA/23.6% Fibonacci retracement level confluence support.

Gold 1-hourly chart

XAU/USD

Overview:
    Last Price: 1215.62
    Daily change: 2.5e+2 pips
    Daily change: 0.205%
    Daily Open: 1213.13
Trends:
    Daily SMA20: 1221.29
    Daily SMA50: 1213.93
    Daily SMA100: 1206.53
    Daily SMA200: 1240.11
Levels:
    Daily High: 1216.47
    Daily Low: 1207
    Weekly High: 1236.6
    Weekly Low: 1206.3
    Monthly High: 1243.43
    Monthly Low: 1182.54
    Daily Fibonacci 38.2%: 1212.85
    Daily Fibonacci 61.8%: 1210.62
    Daily Pivot Point S1: 1207.93
    Daily Pivot Point S2: 1202.73
    Daily Pivot Point S3: 1198.46
    Daily Pivot Point R1: 1217.4
    Daily Pivot Point R2: 1221.67
    Daily Pivot Point R3: 1226.87

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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