- February 22, 2021
- Posted by: Analysis Team
- Category: Forex News
- 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).