- Gold stalls dead cat bounce amid bearish crossover on the hourly chart.
- Hourly RSI has turned flat within the bearish zone.
- A test of $1848 key support is back on the sellers’ radars.
Having failed to find acceptance above $1890 over the last hours, Gold (XAU/USD) has stalled its recovery from Monday’s six-week low of $1850.
The latest turn to the south can be attributed to the bearish crossover spotted on the hourly chart. The 50-hourly moving average (HMA) has pierced through the 21-DMA from above, warranting some caution for the metal’s rebound.
The hourly Relative Strength Index (RSI) has turned flat and remains in the bearish territory, adding credence to the dwindling recovery momentum.
Therefore, the earlier 21-HMA resistance now support at $1872 could offer immediate support, below which the key $1850-49 support could be put at risk. That level is the confluence of the November 9 low and September 28 low.
Alternatively, recapturing $1900 is needed to reviving the recovery. A break above the latter could expose the horizontal 200-HMA resistance at $1902.
Gold: Hourly chart
Gold: Additional levels
Share
