Gold technical analysis: Looks south with symmetrical triangle breakdown on 4H


  • Gold has dived out a symmetrical triangle pattern on the 4-hour chart.
  • The daily chart indicators also favor a drop to $1,480.

Gold is currently trading at $1,496 per Oz, representing 0.22% losses on the day.

On the 4-hour chart, the yellow metal has dived out of a narrowing price range or contracting triangle pattern.

Essentially, sellers have come out victorious in a tug of war with the bulls.

The indicators on the daily chart are also biased bearish. For instance, the moving average convergence divergence (MACD) histogram has crossed below zero, confirming a bearish reversal. The 5-and 10-day moving averages (MAs) have also produced a bearish crossover.

So, a deeper drop to the Aug. 13 low of $1,480. The bearish case would weaken if prices rise above $1,508, although, as of writing, that looks unlikely.

4-hour chart

Trend: Bearish

Pivot points

    1. R3 1516.06
    2. R2 1510.3
    3. R1 1504.17
  1. PP 1498.41
    1. S1 1492.27
    2. S2 1486.51
    3. S3 1480.38

 

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