Gold Technical Analysis: Breakout confirmed on weekly, Doji on D1
- Gold's weekly chart is reporting a bull flag breakout.
- The daily chart is signaling bullish exhaustion.
- The conflicting signals indicate a pullback may precede big gains.
Gold is currently trading at $1,515 per Oz, representing a 0.25% gain on the day.
The yellow metal closed last week with 2.22% gains at $1,511, confirming a flag breakout on the weekly chart.
The pattern indicates the pullback from September highs above $1,555 has ended and the rally from lows near $1,270 seen in April-May has resumed. The flag breakout has opened the doors for a retest of highs above $1,555.
The big gains, however, may not happen immediately, as Friday's Doji candle coupled with an above-70 reading on the 14-day relative strength index is signaling bullish exhaustion.
The metal may drop to the ascending 5-day moving average at $1,506. The bullish weekly chart outlook would be invalidated if prices find acceptance under the last week's low of $1,477.
Weekly chart
Daily chart
Trend: Bullish
Technical levels
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