Gold technical analysis: Risks skewed to the downside after failed breakout


  • Gold's daily chart shows a failed falling channel breakout. 
  • Monday's drop confirmed a bearish candlestick reversal pattern. 
  • The yellow metal could drop to support at $1,481. 

Gold is looking south, having witnessed a failed breakout in the previous two trading days.

The yellow metal closed at $1,504 on Friday, confirming an upside break of a falling channel, represented by Sept. 4 and Sept. 24 highs and Sept. 10 and Oct. 1 lows. 

The breakout was confirmed with a Gravestone Doji and looked weak and was short-lived, as prices fell 0.80% on Monday. 

Put simply, Monday's close at $1,490 activated twin bearish cues: a failed breakout and a Gravestone Doji reversal. 

Gold, therefore, is likely to face selling pressure on Tuesday. The yellow metal is currently trading at $1,491 per Oz and could drop to support at $1,481 (Oct. 22 low). 

The bearish case would be invalidated if prices rise above Monday's high of $1,508.

Daily chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price 1491.71
Today Daily Change -0.79
Today Daily Change % -0.05
Today daily open 1492.5
 
Trends
Daily SMA20 1494.39
Daily SMA50 1504.94
Daily SMA100 1464.43
Daily SMA200 1381.75
 
Levels
Previous Daily High 1508.23
Previous Daily Low 1490.1
Previous Weekly High 1517.92
Previous Weekly Low 1481.05
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1497.03
Daily Fibonacci 61.8% 1501.3
Daily Pivot Point S1 1485.66
Daily Pivot Point S2 1478.81
Daily Pivot Point S3 1467.53
Daily Pivot Point R1 1503.79
Daily Pivot Point R2 1515.07
Daily Pivot Point R3 1521.92

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD flirts with daily lows sub-1.1400

The EUR/USD pair is down to daily lows mid-US afternoon, as the dented market’s mood lifts the dollar. Upbeat US data and an on-hold ECB failed to impress investors.

EUR/USD News

GBP/USD returns to 1.2550 comfort zone

The GBP/USD pair keeps retreating from daily highs, now trading flat for the day around 1.2550. UK employment data came in better-than-anticipated but fell short of boosting sterling.

GBP/USD News

Gold prices walking a tightrope over 1,800 psychological level

Gold prices are trading a touch below the psychological $1,800 level in markets that have consolidated in a sea of fundamentals as traders await the next cue.

Gold News

Why is the crypto market falling today?

War for dominance impacts the market and heralds several days of turbulence. Fight between Bitcoin and Ethereum hurts the Altcoin segment, which is largely overbought after weeks of euphoria. Ripple is the most affected of the Top 3 and steps back into a high-risk environment.

Read more

Oil : The price action seems indecisive at these elevated levels

WTI is still in a bull trend on the chart below but at these elevated levels, it seems the price seems to be very jittery. Previously within this trend when the price moved higher the size of the bullish candles was bigger. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures