Gold Technical Analysis: Poised to extend the ongoing positive momentum to 6-1/2 month tops

Haresh Menghani FXStreet

• The precious metal built on this month's goodish up-move of around 5.0% and is currently placed at fresh 6-1/2 month tops, around the $1284 region.

• A sustained move beyond 200-DMA, for the first time since mid-May 2018, was seen as a key trigger behind the recent upsurge over the past week or so.

• This followed by last week's bullish breakthrough near 1-1/2-month-old ascending trend-channel reinforced the bullish outlook and sets the stage for additional gains.

• Hence, a follow-through move, towards testing 61.8% Fibonacci retracement level of the $1365-$1160 April to August downfall, now looks a distinct possibility.

• Technical indicators on the daily chart are already pointing to slightly overbought conditions and might turn out to be the only factor capping any further up-move.

Gold daily chart

XAU/USD

Overview:
    Today Last Price: 1283.36
    Today Daily change: 3.2e+2 pips
    Today Daily change %: 0.250%
    Today Daily Open: 1280.16
Trends:
    Previous Daily SMA20: 1251.14
    Previous Daily SMA50: 1233
    Previous Daily SMA100: 1219.64
    Previous Daily SMA200: 1229.47
Levels:
    Previous Daily High: 1284.7
    Previous Daily Low: 1274.35
    Previous Weekly High: 1284.7
    Previous Weekly Low: 1258.1
    Previous Monthly High: 1237.4
    Previous Monthly Low: 1196.4
    Previous Daily Fibonacci 38.2%: 1280.75
    Previous Daily Fibonacci 61.8%: 1278.3
    Previous Daily Pivot Point S1: 1274.77
    Previous Daily Pivot Point S2: 1269.39
    Previous Daily Pivot Point S3: 1264.42
    Previous Daily Pivot Point R1: 1285.12
    Previous Daily Pivot Point R2: 1290.09
    Previous Daily Pivot Point R3: 1295.47

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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