Gold Technical Analysis: Clears a descending trend-line hurdle and 200-hour SMA

Haresh Menghani FXStreet

• The precious metal regained positive traction on Wednesday and is now holding comfortably above a short-term descending trend-line resistance.

• With short-term technical indicators gaining positive momentum, a follow-through up-move beyond 200-hour SMA adds credence to the bullish breakout.

• Hence, an extension of the positive momentum, led by some fresh technical buying, now looks a distinct possibility.

Gold 1-hourly chart

Spot rate: $1232
Daily Low: $1223
Trend: Bullish

Resistance
R1: $1235 (weekly tops set on Monday)
R2: $1242 (20-day SMA)
R3: $1248 (horizontal zone)

Support
S1: $1227 (horizontal zone)
S2: $1223 (recent daily closing low)
S3: $1218 (overnight swing low)

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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