Range Markets

  • Gold’s bounce from recent low has stalled near the 100-day SMA. 
  • The metal has carved out an inverse head-and-shoulders pattern.

Gold is currently trading near $1,786 per ounce, having failed to keep gains above the 100-hour Simple Moving Average (SMA) early Monday. The average failed to take out the hurdle on Friday.

Repeated rejection could bring in more chart-driven selling, yielding a re-test of the recent low of $1,760.

The immediate bias will turn bullish if the yellow metal crosses above the hourly chart inverse head-and-shoulders neckline hurdle of $1,792.

A breakout would create room for a rally to above $1,820 (target as per the measured move method).


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