Gold Technical Analysis: Bear trap

• Gold's hourly chart shows a rising wedge breakdown - bearish continuation pattern, which signals an end of the corrective rally from the recent low of $1,211 and a resumption of the sell-off.
• However, the rising wedge breakdown could end up being a bear trap as the daily chart shows a bullish divergence of the relative strength index (RSI) and stochastic.

Hourly chart

Daily chart

Current Price: $1,222

Daily High: $1,225

Daily Low: $1,220

Trend: Bullish

Resistance

R1: $1,226 (50-hour MA)

R2: $1,233 (200-hour MA)

R3: $1,235 (July 23 high resistance on hourly chart)

Support

S1: $1,220 (July 18 low support on hourly chart)

S2: $1,215 (July 20 low support on hourly chart)

S3: $1,211 (July 19 low)