Gold bounced to $4,125.25 on the 5-hour chart after a bear flag breakdown, and Investing.com's technical read stays bearish. The nearest critical support sits at $4,095, and a break would put $4,000 and $3,963 in play.
Gold bounced to $4,125.25 on the 5-hour chart after touching the lower Bollinger Band, which Investing.com says confirms a strong bearish trend. The next support sits 3% below, and the outlet says risk is elevated for bulls.
Moving averages and indicators point down
Price printed a bearish Marubozu candle at $4,115.45 on Oct 14. It now trades below both the 20-period average at $4,190.76 and the 200-period average at $4,376.41.
Trend indicators agree, according to the source. MACD reads -10.59, RSI sits at 34.13, and SuperTrend is down at $4,196.70.
Bear flag breakdown opens room to $3,963
A completed bear flag breakdown at $4,160 has opened the door to further losses. The nearest critical support is $4,095, where a double bottom could form. If that level breaks, the next stop is the $4,000-$3,963 zone.
The Fibonacci retracement also failed: the 78.6% level at $4,132 gave way, which puts the 100% swing base at $3,963 into play.
Trade scenarios and risks
Investing.com's bear case enters at $4,118 or on a failed retest of $4,160, with stops at $4,205. Its bull case starts at $4,095 with a stop at $4,050, and the outlet says the odds are skewed against it.
Sharp bounces could trigger short-term bear traps, but lasting upside demands a close above $4,205. The source also flags $4,095-$4,160 as a choppy "no-trade" zone, and says RSI near oversold does not guarantee a reversal.
Source: Investing.com
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