Gold Technical Analysis – The $2000 Ceiling Holds

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FxNews—In today’s gold technical analysis, the XAUUSD pair reached its October high and tested this resistance mark on November 23. The pair is currently trading within a bullish flag pattern. However, a bearish, long-wick candlestick pattern has emerged today. Concurrently, the Awesome Oscillator indicates a divergence on the XAUUSD 4-hour chart.

Gold Technical Analysis – The $2000 Ceiling Holds

Gold Technical Analysis - The $2000 Ceiling Holds

Gold Technical Analysis – The $2000 Ceiling Holds – Daily Chart

If the bears manage to keep gold’s price below the $2,006 mark, it seems plausible that it might enter a correction phase towards the 23.6% Fibonacci retracement level.

There are three compelling reasons supporting this bearish scenario:

  1. The $2,006 level has been a strong resistance, holding firm for over a month.
  2. The emergence of a bearish long-wick candlestick pattern.
  3. Divergence signaled by the Awesome Oscillator.

However, this bearish outlook would be invalidated if the gold price exceeded the $2,006 resistance level.

  • 22 November 2023