Gold technical analysis: Falling channel breakout confirmed, but resistance at $1,518 still intact


  • Gold's daily chart shows a falling channel breakout. 
  • A break above $1,518 is needed for bullish reversal confirmation. 

Gold jumped 1.11% on Thursday, confirming an upside break of the falling channel, represented by trendlines connecting Sept. 4 and Sept. 25 highs and Sept. 10 and Oct. 1 lows. 

The channel breakout indicates the pullback from the September high of $1,557 has ended. The outlook, however, would turn bullish once the yellow metal invalidates the bearish lower highs setup with a move above the Oct. 25 high of $1,518.  

As of writing, Gold is trading largely unchanged on the day at $1,512 per Oz. 

The resistance at $1,518 could be scaled as Thursday's breakout is backed by a bullish or an above-zero reading on the MACD histogram and an above-50 reading on the 14-day relative strength index (RSI). A close above $1,518 would open the doors for $1,536 (Sept. 24 high). 

The outlook would turn bearish if the recent low of $1,474 is breached. The downside was consistently restricted in $1,474-$1,477 range in the second half of October. 

Daily chart

Trend: Bullish

Technical levels

XAU/USD

Overview
Today last price 1512.27
Today Daily Change -0.69
Today Daily Change % -0.05
Today daily open 1512.96
 
Trends
Daily SMA20 1494.99
Daily SMA50 1504.7
Daily SMA100 1469.36
Daily SMA200 1385.01
 
Levels
Previous Daily High 1514.22
Previous Daily Low 1493.8
Previous Weekly High 1517.92
Previous Weekly Low 1481.05
Previous Monthly High 1519.04
Previous Monthly Low 1455.5
Daily Fibonacci 38.2% 1506.42
Daily Fibonacci 61.8% 1501.6
Daily Pivot Point S1 1499.77
Daily Pivot Point S2 1486.57
Daily Pivot Point S3 1479.35
Daily Pivot Point R1 1520.19
Daily Pivot Point R2 1527.42
Daily Pivot Point R3 1540.61

 

 

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