Gold Price Analysis: Probes pennant resistance
|- Gold pushed against the top end of the multi-week pennant pattern.
- A breakout would signal a revival of the bull run from November lows.
Gold tested key resistance a few minutes ago, which, if breached, could accelerate the broader uptrend that has been in place since November.
The yellow metal ran into $1,584 – the top end of the pennant pattern (series of lower highs and higher lows) created over the last 6 weeks.
A pennant breakout would be confirmed if prices close Monday above $1,584, signaling a continuation of the rally from the Nov. 26 low of $1,463 and open the doors for a test and possible break above the recent high of $1,611.
Alternatively, if the yellow metal dives out of the narrowing price range, the sellers would regain control and could push the shiny metal down to $1,536 (pennant low), under which major support is seen at $1,500.
At press time, an ounce of gold is changing hands at $1,582.
Daily chart
Trend: Neutral
Technical levels
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