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.

Omkar Godbole FXStreet Contributor

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
PP 1498.41
1. S1 1492.27
2. S2 1486.51
3. S3 1480.38

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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