- Gold extends recovery for the second straight session.
- Bull pennant breakout confirmed on the hourly chart.
- Hourly RSI peeps into the overbought territory.
Gold’s recovery from five-month lows of $1765 gains further traction on Wednesday, as the bulls gear up for a test of the earlier critical support now resistance at $1850.
The technical set up favors the bulls, as the price confirmed a bull pennant breakout on the hourly chart in the last hour. The validation came in after the metal gave an hourly closing above the falling trendline resistance at $1815.
The price pierced above the 200-hourly moving average (HMA) at $1819, which offered extra zest to the XAU bulls.
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Gold Price Chart: Hourly