vGold Technical Update

Previous: Gold Still Trading in Wedge but Introduced Bearish Momentum (10/18)

XAU/USD (Gold)

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Gold had introduced bearish momentum within the wedge patter last time testing support during 10/18. The market continued lower in the Wednesday Asian session breaking below the wedge pattern support. The last couple of 4H candles show some indecision here below the wedge, and above 1600 support handle, and psychological pivot. Momentum reflects a bearish market, and price action would confirm with a break and close below 1600.

The bearish target in the short-term is the tail low from Sept 26 at 1532. Note the 200-period moving average in the daily chart closer to 1550. If the market clears these support factors, the next support pivot is at the 1476.75 level, which provided support April, May and June this year.

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Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.