Technical Analysis: Rising wedge on 4H keeps gold sellers hopeful
Gold picks up bids inside a two-week-old bearish chart pattern during early Friday. Given the yellow metal’s two-time failure in crossing the $1798 hurdle, coupled with the easing bullish MACD signal, gold sellers are hopeful to revisit the previous resistance line from early March around $1760. However, the quote’s sustained downside below $1784 becomes necessary for that. Should the precious metal drop back below the two-month-old support line close to $1760, sellers may not refrain from attacking the 200-SMA level of $1736.50.
Meanwhile, fresh buying needs validation from the $1800 threshold while the recent high near $1798 can test the latest recovery moves. It should be noted that the upper line of the stated rising wedge near $1807 acts as an additional resistance before directing the bullion prices to late February tops close to $1816. Overall, gold buyers seem tiring and hence rising wedge confirmation should trigger a stronger fall.