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Gold Technical Analysis: Corrective bounce likely

Gold could see a corrective bounce above $1,290, as the 4-hour chart is showing signs of bearish exhaustion. 

4-hour chart

Multiple long-tailed candles near $1,280 support indicate seller exhaustion. That coupled with a bullish divergence (higher lows on the RSI) indicate scope for a corrective move higher to descending 10-day MA, currently located at $1,300.

The probability of a corrective bounce, however, would drop sharply if the immediate support at $1,280 is breached. 

Trend: oversold bounce likely

XAU/USD

Overview:
    Today Last Price: 1286.54
    Today Daily change: 0.60 pips
    Today Daily change %: 0.05%
    Today Daily Open: 1285.94
Trends:
    Daily SMA20: 1313.53
    Daily SMA50: 1302.15
    Daily SMA100: 1267.1
    Daily SMA200: 1237.06
Levels:
    Previous Daily High: 1288.97
    Previous Daily Low: 1281.28
    Previous Weekly High: 1332.58
    Previous Weekly Low: 1290.3
    Previous Monthly High: 1346.85
    Previous Monthly Low: 1300.1
    Daily Fibonacci 38.2%: 1284.22
    Daily Fibonacci 61.8%: 1286.04
    Daily Pivot Point S1: 1281.82
    Daily Pivot Point S2: 1277.7
    Daily Pivot Point S3: 1274.13
    Daily Pivot Point R1: 1289.52
    Daily Pivot Point R2: 1293.09
    Daily Pivot Point R3: 1297.21

Author

Omkar Godbole

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

More from Omkar Godbole
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