Today Technical Analysis: Gold falls below $4,200, hits lowest level since March

Gold Technical Analysis

Gold remains largely under pressure with the latest candles suggest that selling pressure may be slowing after a steep decline.

From a moving average perspective, gold continues to trade below the 20-period moving average, while the shorter term averages remain beneath the longer term trend indicator. The recent recovery has allowed price to move above the 5-period and 10-period moving averages, but these remain well below the 20-period average.

Immediate resistance is located around $4,240–$4,260, followed by the key resistance zone near $4,340. Support remains at $4,172, and a break below this level could expose the next downside targets near $4,100 and potentially lower. While the latest bounce is encouraging for bulls, the overall outlook remains bearish until price can reclaim the 20-period moving average and begin forming higher highs.

Gold 1H Chart

Source: STARTRADER app | Gold falls below $4,200 as the US dollar remains strong

Brent Technical Analysis

Brent crude oil remains in a clear downtrend despite finding temporary support near $91.10. The latest bounce from the recent low failed to generate meaningful bullish momentum, and sellers have quickly regained control, pushing price back toward the lower end of the trading range.

The moving averages continue to reinforce the bearish outlook. Price is trading below the 5-period, 10-period, and 20-period moving averages, while the averages themselves are sloping downward.

Immediate support is located at $91.10, followed by the psychological $90.00 level. Resistance is found at $93.30, followed by $94.60 and then the more significant resistance zone near $96.00. Unless Brent can reclaim and hold above the 20-period moving average, rallies are likely to remain corrective. The short-term outlook remains bearish.

Brent 1H Chart

Source: STARTRADER app | Oil prices fluctuate as tensions remain in the Middle East

S&P 500 Technical Analysis

The S&P 500 remains under short term bearish pressure despite stabilizing after the sharp decline that pushed the index down to 7,249.

The moving averages continue to favor the sellers. Price is currently trading below the 20-period moving average at approximately 7,387, while the 5-period and 10-period moving averages remain clustered beneath the longer-term average.

Immediate resistance is located around 7,380–7,400, followed by 7,440 and then 7,550. Support remains at 7,326, followed by the major swing low at 7,249. As long as price remains below the 20-period moving average, the short-term outlook remains cautiously bearish, although the pace of the decline has slowed.

S&P 500 1H Chart

Source: STARTRADER app | US indices remain under pressure on profit taking and geopolitical tensions

AUTHOR

Ghassan Albohtori 

Financial Market Analyst - STARTRADER

Ghassan Albohtori is a financial market analyst with experience in macroeconomics, investing, and currency trading. He conducts in-depth market research covering fundamental and technical analysis of different instruments to find major changes in market trends. Mr. Ghassan's main focus is the effects of economic data on different asset classes and how this affects prices.

Risk Disclaimer: This material is provided for informational purposes only and does not constitute a recommendation or investment advice. Trading financial instruments on margin involves substantial risk and may not be appropriate for all investors.