Gold is poised for reversal after Daily Doji Star Candlestick
XAU/USD Technical Analysis
Yesterday’s Gravestone Doji Star Candlestick pattern gave signals that the price might reverse in the coming sessions. It means the Gold prices will rebound today and are poised to remain on a positive note for the next few days.
The 1803 level is acting as critical support right now. It is the same level where the 100-Day Simple Moving Average line is cutting the descending trendline. Any break below this level would trigger the next 200-Day SMA line as initial support for gold prices. If the price continues to decline, they will eventually fall to the weekly support region.
On the upside, the 20-Day Simple Moving Average is providing initial resistance for the yellow metal. Any break above this level will add further bullish momentum towards the next critical resistance at the 1869 level, where the 50-Day SMA is also resting. From here, the weekly resistance level starts.
The technical indicators provide mixed signals. The Moving Average Convergence & Divergence (MACD) histograms above the signal line indicate that the negative trend might reverse soon. On the other hand, Relative Strength Index (RSI) at 40 levels near the mid-level shows that gold prices might keep falling for a while. Furthermore, the Stochastic Oscillator with the %K line already entered the oversold region, and the %D line poised to enter indicates that there is still room for further downside before reversal.
Gold Daily Technical Levels
Pivot Point: 1820.23