Gold Price Analysis: Trapped in a falling channel on 1H chart

Gold is flashing green in Asia, but the bias remains bearish with prices still trapped in a falling channel on the hourly chart. At press time, the ye  |  26/02/2020 02:26
  • Gold's hourly chart shows the metal is stuck in a bearish channel. 
  • A break above $1,647 is needed to confirm a bullish breakout.

Gold is flashing green in Asia, but the bias remains bearish with prices still trapped in a falling channel on the hourly chart. 

At press time, the yellow metal is trading at $1,642 per Oz, representing 0.45% gains on the day. 

While the recovery from the overnight low of $1,625 is encouraging, the metal is yet to challenge the falling channel resistance at $1,647. An hourly close above that level would imply an end of the pullback from recent highs near $1,690 and would shift risk in favor of a rise to $1,660 (a lower high on the hourly chart). 

A breakout will likely remain elusive if prices find acceptance under the session low of $1,634. That would validate the bearish reversal pattern seen on the daily chart and could yield deeper declines toward $1,611 (Jan. 8 high). 

Hourly chart

Daily chart

Trend: Bearish

Technical levels

 

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