Gold Technical Analysis: Descending triangular formation points to some near-term weakness
• Over the past one week or so, the precious metal has been finding decent support near the $1220 horizontal zone but has been struggling to make it through a descending trend-line.
• The combination of a descending trend-line and a horizontal support constituted towards the formation of a descending triangle on hourly charts, pointing to a near-term bearish bias.
• Meanwhile, technical indicators on the 1-hourly chart have already drifted into bearish territory and have also started losing positive momentum on 4-hourly/daily charts.
• The set-up clearly suggests that any attempted move towards the descending trend-line resistance is likely to be utilized as a selling opportunity amid improving risk-appetite.
Gold 1-hourly chart
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XAU/USD
Overview:
Today Last Price: 1224.56
Today Daily change: 1.7e+2 pips
Today Daily change %: 0.140%
Today Daily Open: 1222.85
Trends:
Previous Daily SMA20: 1219.51
Previous Daily SMA50: 1218.18
Previous Daily SMA100: 1207.35
Previous Daily SMA200: 1236.9
Levels:
Previous Daily High: 1228.58
Previous Daily Low: 1219.93
Previous Weekly High: 1230.3
Previous Weekly Low: 1217.7
Previous Monthly High: 1243.43
Previous Monthly Low: 1182.54
Previous Daily Fibonacci 38.2%: 1223.23
Previous Daily Fibonacci 61.8%: 1225.27
Previous Daily Pivot Point S1: 1219
Previous Daily Pivot Point S2: 1215.14
Previous Daily Pivot Point S3: 1210.35
Previous Daily Pivot Point R1: 1227.64
Previous Daily Pivot Point R2: 1232.43
Previous Daily Pivot Point R3: 1236.29