Gold technical analysis: Bulls testing bear's commitments at $1500 critical level
|- Gold prices back over the 1500 critical line, but bulls have more to prove.
- A 50% mean reversion level on the cards on repeated upside failures.
Spot Gold prices managed to get through the psychological $1500 level overnight with a solid bullish close. Downside attempts have been rejected, leaving an hourly bullish pin bar as the metal morphs into a bull flag. Bullish continuations will target the usual suspects higher up, namely the 1520 area that is guarding prospects for a test back to the key 1535 resistance target.
Firstly, trendline resistance here needs to give at this juncture. Failures will open a run back to the downside where bears can target a 50% mean reversion of the late July swing lows to recent highs level around 1460/70. Further beyond a 50% retracement will open prospects for the 61.8% at 1450 ahead of 1420 that guards 1385 as a full retracement.
Weekly Gold chart
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