Technical Analysis: Gold flirts with previous resistance line during BPC play on 4H
Gold’s pullback from a two-month low, followed by a bounce off the previous resistance line, portrays a BPC (Breakout-Pullback-Continuation) bullish chart pattern on the four-hour (4H) formation. However, the bulls need to keep prices above $1,759 to recall the $1,800 on the chart. During the metal’s further run-up beyond the $1,800 round-figure, late February tops near $1,816 will be in the spotlight.
Meanwhile, a downside break of $1,759 can quickly fetch the quote towards the 200-SMA level of $1,727 before highlighting the monthly low near $1,705 for gold sellers. Though, any further weakness past-$1,705 will be questioned by a six-week-old horizontal area surrounding $1,676-78. Overall, gold is up for consolidating early 2021 losses but overbought RSI may print intermediate pullback moves.