fxs_header_sponsor_anchor

News

Gold technical analysis: Bears challenge a key pivotal support near $1400 mark

  • Gold remained under some selling pressure for the third consecutive session on Wednesday and dropped to one-week lows, around the key $1400 psychological mark in the last hour.
  • The mentioned handle coincides with a key pivotal point - 200-period SMA on the 4-hourly chart, which if broken would set the stage for an extension of the ongoing downward trajectory.

Technical indicators on the mentioned chart have been gaining negative traction and support prospects for an eventual bearish breakdown. However, oscillators on the daily charts - although have been losing positive momentum, maintained their bullish bias and warrant some caution before placing any aggressive bets.

Meanwhile, a follow-through selling is likely to accelerate the fall further towards the $1390 region – marking near one-month-old ascending trend-line support. The said trend-line, along with another descending trend-line constitutes towards the formation of a symmetrical triangle on short-term charts

The symmetrical triangle is seen as a continuation pattern - bullish in this case and represents a brief pause before the next leg of a directional move. Hence, any dips towards the triangle support, around the $1390 region might still be seen as a buying opportunity and should help limit further downside.

On the flip side, the $1406-07 region now seems to act as an immediate resistance, above which the momentum could get extended towards $1415 supply zone. A follow-through up-tick might stall near the triangle resistance – around the $1421-22 region, which if cleared will set the stage for the resumption of the prior bullish trend.

Gold 4-hourly chart

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.