Gold technical analysis: Thursday's bearish outside day makes today's close pivotal

Gold created a bearish outside day on Thursday, an early warning of bearish reversal.
Acceptance below Thursday's low of $1,520 is needed to confirm the trend change.

Omkar Godbole FXStreet Contributor

Gold is currently trading at $1,526 per Oz, having hit a low of $1,522 earlier today.

The yellow metal hit a high and low of $1,550 and $1,520, respectively, on Thursday and ended the day with 0.77% losses, engulfing the price action seen in the preceding two trading days.

Essentially, Gold created a bearish outside day candle on Thursday, which is widely considered a sign of bullish-to-bearish trend change.

The trend reversal, however, would be confirmed if prices find acceptance below Thursday's low of $1,520. So, today's close is pivotal.

A break below $1,520, if confirmed, would open the doors to $1,492 (Aug. 22 low) and $1,480 (Aug. 13 low).

Daily chart

Trend: Bearish below $1,520

Pivot points

1. R3 1575.1
2. R2 1562.65
3. R1 1545.1
PP 1532.65
1. S1 1515.1
2. S2 1502.65
3. S3 1485.1

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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