Gold technical analysis: Set-up remains in favour of bullish traders; 100-hour SMA marks a key support
- Gold has been oscillating between two converging trend-lines over the past three trading sessions, forming a symmetrical triangle on the 1-hourly chart.
- The triangle support - around the $1410 region, coincides with 100-hour SMA and should now act as a key pivotal point for short-term traders.
Given the recent bullish momentum since late-May, the triangle might still be categorized as a continuation pattern that marks a brief pause and thus, support prospects for a further near-term appreciating move.
Meanwhile, technical indicators on hourly/daily charts maintained their bullish bias and further reinforce the constructive outlook, though traders are likely to wait for a sustained move beyond the triangle resistance.
A convincing break through the mentioned barrier, currently near the $1417-18 region, the commodity is likely to accelerate the momentum further towards $1422-24 intermediate resistance en-route multi-year tops, around the $1438-40 region.
On the flip side, break below the $1410 confluence support might negate the bullish outlook and prompt some aggressive technical selling, turning the metal vulnerable to slide back below the key $1400 psychological mark.
Gold 1-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
