Gold technical analysis: 100-month MA is a level to beat for the bulls

0
  • Gold has risen to 100-month MA – a technical level which capped upside in 2018.
  • A close above the 100-month MA would open up upside toward $1,433.

Gold (XAU/USD) is struggling to cut through key technical line which proved a tough nut to crack in 2018.

The yellow metal rose to $1,358 on Friday, but the break above the 100-month moving average (MA), currently flatlined at $1,351 was short-lived with prices falling back to $1,136 earlier today. As of writing, gold is currently trading at $1,342 per Oz.

It is worth noting that the 100-month moving average capped upside in four months to April 2018 and the repeated failure to close out above the long-term average ended up fueling a sell-off to $1,160 by August.

Hence, a monthly close above the crucial average of $1,351 is needed to confirm a long-term bullish breakout. That would open the doors to $1,433 (August 2013 high).

Monthly chart

Trend: Bullish above 100-month MA

Pivot levels

 

Get the 5 most predictable currency pairs

About Author

Comments are closed.