Gold Plunges On the Day; Now Testing Major Support at 1452

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Written By: Eno Eteng (MSTA)

Nov 11, 2019, 16:28 GMT 16:28

Gold Prices

Summary:

Gold (XAUUSD) breaks below the bearish pennant on the 4-hour chart, but could find support at 1452.54 on the day. US-China trade headlines eyed.

Gold (XAUUSD) tanked further on the day from intraday highs of 1466.57, and is now testing major support at 1452.54 (S1 pivot support and previous high of July 19). This move now confirms the break of previous intraday support at 1469.28 (previous low of October 1).

On the 4-hour chart, this latest leg to the south represents a continuation breakout move from the bearish pennant pattern.

XAUUSD Technical Outlook (Short-term)

A break of 1452.54 to the downside could target 1446.03 (S2 pivot), which remains the next short-term support target. If the downside move is strong enough, 1435.80 (S3 pivot), which is a previous high of June 25 and July 3 working in role reversal could also come into the picture. This would provide more room for the measured move of the pattern to run to completion.

On the flip side, if 1452 is able to hold on strongly as a price support, it could be the springboard for price to bounce to 1466.57 in a retest of that price level.

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.