Gold technical analysis: Set-up remains in favour of bullish traders; 100-hour SMA marks a key support

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  • Gold has been oscillating between two converging trend-lines over the past three trading sessions, forming a symmetrical triangle on the 1-hourly chart.
  • The triangle support – around the $1410 region, coincides with 100-hour SMA and should now act as a key pivotal point for short-term traders.

Given the recent bullish momentum since late-May, the triangle might still be categorized as a continuation pattern that marks a brief pause and thus, support prospects for a further near-term appreciating move. 

Meanwhile, technical indicators on hourly/daily charts maintained their bullish bias and further reinforce the constructive outlook, though traders are likely to wait for a sustained move beyond the triangle resistance.

A convincing break through the mentioned barrier, currently near the $1417-18 region, the commodity is likely to accelerate the momentum further towards $1422-24 intermediate resistance en-route multi-year tops, around the $1438-40 region.

On the flip side, break below the $1410 confluence support might negate the bullish outlook and prompt some aggressive technical selling, turning the metal vulnerable to slide back below the key $1400 psychological mark.

Gold 1-hourly chart

 

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