Gold Technical Analysis: on the verge of confirming a fresh bearish breakdown

Haresh Menghani FXStreet

• Drops back to challenge an ascending trend-line support, a part of a symmetrical triangular formation on short-term charts.
• A convincing break below the contracting wedge support would open the room for further depreciating move towards a medium-term ascending trend-line support, extending from January 2017 through lows touched in June/December 2017.
• Descending trend-line resistance, also a part of the triangular formation should continue to keep a lid on any meaningful recovery attempt.

Gold 4-hourly chart

Current Price: $1,294.15
Daily high: $1,296.11
Trend: Bearish below triangle support

Resistance
R1: $1298 (horizontal zone)
R2: $1,302 (descending trend-line hurdle)
R3: $1,307 (200-day SMA)

Support
S1: $1,289 (June 1 low)
S2: $1,282 (May 21 low)
S3: $1,273 (medium-term ascending trend-line)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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