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

   “¢   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