Gold technical analysis: Bulls testing bear's commitments at $1500 critical level

Gold prices back over the 1500 critical line, but bulls have more to prove.
A 50% mean reversion level on the cards on repeated upside failures.

Ross J Burland FXStreet

Spot Gold prices managed to get through the psychological $1500 level overnight with a solid bullish close. Downside attempts have been rejected, leaving an hourly bullish pin bar as the metal morphs into a bull flag. Bullish continuations will target the usual suspects higher up, namely the 1520 area that is guarding prospects for a test back to the key 1535 resistance target.

Firstly, trendline resistance here needs to give at this juncture. Failures will open a run back to the downside where bears can target a 50% mean reversion of the late July swing lows to recent highs level around 1460/70. Further beyond a 50% retracement will open prospects for the 61.8% at 1450 ahead of 1420 that guards 1385 as a full retracement.

Weekly 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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