Gold Technical Analysis: head-and-shoulders seen on hourly chart

Gold has created a classic head-and-shoulders pattern on the hourly chart with the neckline support at $1,220.
A break below the neckline support would confirm a bull-to-bear trend change - the recovery rally from the Nov. 13 low of $1,196 has ended and the bears have likely regained control - and would open up downside toward $1,210 (target as per the measured height method).
The yellow metal has found acceptance below the 50-hour and 100-hour exponential moving averages (EMAs). More importantly, both EMAs are beginning to roll over in favor of the bears. As a result, a break below the neckline support of $1,220 cannot be ruled out.

Omkar Godbole FXStreet Contributor

Hourly Chart

Trend: Bearish

XAU/USD

Overview:
    Today Last Price: 1221.83
    Today Daily change: -35 pips
    Today Daily change %: -0.0286%
    Today Daily Open: 1222.18
Trends:
    Previous Daily SMA20: 1218.96
    Previous Daily SMA50: 1218.56
    Previous Daily SMA100: 1207.46
    Previous Daily SMA200: 1236.43
Levels:
    Previous Daily High: 1228.04
    Previous Daily Low: 1221.4
    Previous Weekly High: 1230.3
    Previous Weekly Low: 1217.7
    Previous Monthly High: 1243.43
    Previous Monthly Low: 1182.54
    Previous Daily Fibonacci 38.2%: 1223.93
    Previous Daily Fibonacci 61.8%: 1225.5
    Previous Daily Pivot Point S1: 1219.71
    Previous Daily Pivot Point S2: 1217.24
    Previous Daily Pivot Point S3: 1213.07
    Previous Daily Pivot Point R1: 1226.34
    Previous Daily Pivot Point R2: 1230.51
    Previous Daily Pivot Point R3: 1232.98

Author

Omkar Godbole

FXStreet Contributor

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

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