Gold Technical Analysis: Bouncing off 200-hour MA

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Gold is currently trading at $1,325, having tested the 200-hour moving average (Ma) support of $1,320 in the overnight trade.

Hourly chart

As seen above, the 14-hour relative strength index has pierced the descending trendline. So, the metal may revisit $1,330, although further gains look unlikely, as early signs of bearish reversal have emerged on a longer duration chart.

Daily chart

Gold fell 1.1 percent yesterday – the biggest single-day drop since Nov. 9 – confirming a bearish divergence of the 14-day RSI. The short-term bearish reversal, however, would fail if the metal closes today above the ascending 5-day MA, currently at $1,330.

Trend: bearish

 

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