Gold confirms a bull flag to call for a target of $1827

Gold (XAU/USD) started out a fresh week on a cautious footing, despite the positive close last week around $1810 levels. Technical setup favors the bulls in the near-term as the yellow metal has confirmed a bull flag pattern, FXStreet’s Dhwani Mehta briefs.

Key quotes

“A bull flag pattern is spotted on the hourly chart, as gold has closed above the falling trendline resistance at $1809.98 on an hourly basis.”

“The bullish breakout calls for a pattern target of $1827 in the coming days. In the meantime, the previous week of $1815.10 will challenge the bulls’ commitment. Acceptance above the latter, the multi-year high at $1818.17 will be put to test, in a bid to test the $1820 round figure.”

“A cluster of supports is aligned around $1805, which is the level to beat for the bears in the near-term. That is the confluence of the 50, 100, 200-hourly Simple Moving Averages and falling trend line support.”

“Should the bulls fail to defend the $1805 support, the next downside target is placed at the $1800 psychological level.”