Gold Technical Analysis: Bullish flag spotted on 1-hourly chart, sustained move beyond 100-DMA awaited

Haresh Menghani FXStreet

• The commodity has been correcting from 2-1/2 month tops alongside a short-term descending trend-channel formation on the 1-hourly chart.

• Against the backdrop of the recent upsurge from $1183 area, the channel now seems to constitute towards the formation of a bullish flag chart pattern.

• Moreover, positive technical indicators on the daily chart support the constructive formation though are slowly catching up on the 1-hourly chart.

• Meanwhile, the commodity's inability to sustain/build on the momentum beyond 100-day SMA might be the only factor holding traders from placing fresh bullish bets.

• Hence, it would be prudent to wait for a strong follow-through buying beyond the mentioned barrier before positioning for any further near-term appreciating move.

Gold 1-hourly chart

XAU/USD

Overview:
    Last Price: 1222.51
    Daily change: 31 pips
    Daily change: 0.0254%
    Daily Open: 1222.2
Trends:
    Daily SMA20: 1204.4
    Daily SMA50: 1201.2
    Daily SMA100: 1208.48
    Daily SMA200: 1255.4
Levels:
    Daily High: 1229.6
    Daily Low: 1220.3
    Weekly High: 1226.4
    Weekly Low: 1182.54
    Monthly High: 1212.64
    Monthly Low: 1180.63
    Daily Fibonacci 38.2%: 1223.85
    Daily Fibonacci 61.8%: 1226.05
    Daily Pivot Point S1: 1218.47
    Daily Pivot Point S2: 1214.73
    Daily Pivot Point S3: 1209.17
    Daily Pivot Point R1: 1227.77
    Daily Pivot Point R2: 1233.33
    Daily Pivot Point R3: 1237.07

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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