Gold Technical Analysis: Pullback has run into ascending 50-hour MA support

Omkar Godbole FXStreet Contributor

Gold's pullback from yesterday's high of $1,242 has stalled at the ascending 50-hour moving average (MA) support of $1,234. A strong bounce from that MA support would reinforce bullish view put forward by the daily chart, opening doors for a convincing break above the Oct. 26 high of $1,243.

Hourly chart

As seen above, gold has taken out the ascending trendline and has charted a bearish divergence of the relative strength index (RSI). The key averages (50, 100 and 200), however, are located one above the other, signaling the path of least resistance is still to the higher side. As a result, a strong bounce from the 50-hour MA could recharge the engines for a fresh move above the recent high of $1,243.

Daily Chart

The metal crossed the trendline connecting the Oct. 26 and Nov. 7 lows earlier this week, signaling a resumption of the rally from the Nov. 13 low of $1,196. The outlook as per the daily chart remains bullish while prices are holding above the ascending 10-day MA of $1,225.

Trend: Bullish

XAU/USD

Overview:
    Today Last Price: 1234.84
    Today Daily change: -3.3e+2 pips
    Today Daily change %: -0.264%
    Today Daily Open: 1238.11
Trends:
    Previous Daily SMA20: 1218.99
    Previous Daily SMA50: 1221.7
    Previous Daily SMA100: 1209.9
    Previous Daily SMA200: 1233.72
Levels:
    Previous Daily High: 1241.9
    Previous Daily Low: 1230.6
    Previous Weekly High: 1231.8
    Previous Weekly Low: 1211.2
    Previous Monthly High: 1237.4
    Previous Monthly Low: 1196.4
    Previous Daily Fibonacci 38.2%: 1237.58
    Previous Daily Fibonacci 61.8%: 1234.91
    Previous Daily Pivot Point S1: 1231.84
    Previous Daily Pivot Point S2: 1225.56
    Previous Daily Pivot Point S3: 1220.53
    Previous Daily Pivot Point R1: 1243.14
    Previous Daily Pivot Point R2: 1248.17
    Previous Daily Pivot Point R3: 1254.45

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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