Gold Technical Analysis: Downside favored on bearish outside reversal and bear flag

Gold created a bearish outside reversal (engulfing) candle yesterday, as the bull failure to capitalize on the break above the key resistance at $1,315 was followed by a drop to $1,305. 

Validating that bearish candlestick pattern is the bear flag breakdown on the 15-minute chart, which could yield a drop to $1,294 - target as per the measured move method, that is, the length of the preceding bearish move subtracted from the breakdown price. 

Daily chart

Hourly chart

Trend: bearish

    1. R3 1327.28
    2. R2 1322.74
    3. R1 1314.28
  1. PP 1309.74
    1. S1 1301.28
    2. S2 1296.74
    3. S3 1288.28

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Weakest daily close since June 2017, focus on US durable goods

EUR/USD looks south toward 1.10, having bolstered the already bearish technical setup with a close below 1.176 yesterday. The pair took a beating yesterday, courtesy of the broad-based US dollar demand. 

EUR/USD News

GBP/USD regains 1.2900 handle on Brexit headlines

The GBP/USD pair regains its stand above 1.2900 while heading into the London open on Thursday. Absence of immediate challenge to PM May’s position and a likely Brexit deal voting helps the GBP.

GBP/USD News

USD/JPY keeps range around 112.00 post-BOJ

USD/JPY has barely moved in response to BOJ’s decision to keep key policy tools unchanged. The downward revision of the growth and inflation forecasts could push the JPY lower during the day ahead. 

USD/JPY News

US Durable Goods Preview: Where the consumer leads

Durable goods orders are expected to rise 0.8% in March having fallen 1.6% in February. Orders excluding the transportation sector are predicted to gain 0.2%.

Read more

Gold: Bullish divergence on the momentum indicators

Technically, bears can look to break below 200-DMA around the confluence of 1249/50% Fibo area. There is bullish divergence on the momentum indicators such as RSI and stochastics.

Gold News

Majors

Cryptocurrencies

Signatures