Technical Analysis: Gold flirts with previous resistance line during BPC play on 4H

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.

Trade Forex with MTrading

Join us on FB and Twitter to stay updated on the latest market events.