Technical Analysis: Gold portrays head-and-shoulders pattern on hourly chart

Technical Analysis: Gold portrays head-and-shoulders pattern on hourly chart

Despite the latest corrective pullback, gold keeps an eight-day-old bearish chart pattern, head-and-shoulders, intact unless it crosses the last Thursday’s peak surrounding $1,850. More immediately, the 200-HMA level of $1,842.18 defends bears targeting the monthly high near $1,875. Also, the quote’s ability to refresh December’s peak will direct gold bulls toward the mid-November high around the $1,900 threshold.

Meanwhile, a downside break below $1,823 will confirm the bearish chart pattern. Following that, gold sellers can eye for the theoretical target near $1,775/78. However, the $1,800 round-figure and November 30 top of $1,784.37 will add filters to the bullion’s downside. It should, however, be noted that gold’s weakness below $1,775 will have to break the previous month’s trough of $1,764.34 to keep the bears hopeful.

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