Gold technical analysis: Range play intact amid trade optimism


  • Gold remains trapped in a sideways channel for a fifth straight week. 
  • The hourly chart shows scope for a re-test of $1,500.

Gold is currently trading at $1,506 per Oz, representing a 0.17% gain on the day, having faced rejection at highs near $1,515 on Monday.

Prices remain trapped in $1,520-$1,475 range for the fifth straight week. The US and China are closing on the phase-one of a trade deal and forcing a breakout is going to be a tough task for the yellow metal bulls.

Currently, the hourly chart relative strength index is reporting bearish conditions with a below-50 print and the MACD histogram is producing deeper bars below the zero line, signaling strengthening bearish momentum.

Gold, therefore, risks extending losses to the hourly chart support at $1,503 in the next few hours. A violation there would expose the psychological support of $1,500 (200-hour MA).

The outlook as per the hourly chart would turn bullish if prices invalidate the lower highs setup with a move above $1,510.

Daily chart

Trend: Neutral-to-bearish

Technical levels

XAU/USD

Overview
Today last price 1506.46
Today Daily Change -2.12
Today Daily Change % -0.14
Today daily open 1508.58
 
Trends
Daily SMA20 1496.23
Daily SMA50 1504.07
Daily SMA100 1472.77
Daily SMA200 1387.23
 
Levels
Previous Daily High 1514.85
Previous Daily Low 1504.64
Previous Weekly High 1515.38
Previous Weekly Low 1481.1
Previous Monthly High 1519.04
Previous Monthly Low 1455.5
Daily Fibonacci 38.2% 1508.54
Daily Fibonacci 61.8% 1510.95
Daily Pivot Point S1 1503.86
Daily Pivot Point S2 1499.15
Daily Pivot Point S3 1493.65
Daily Pivot Point R1 1514.07
Daily Pivot Point R2 1519.57
Daily Pivot Point R3 1524.28

 

 

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