Today Technical Analysis: Gold falls more than 1% since the market open after falling to break $4,100

Gold Technical Analysis

Gold has transitioned from a strong recovery into a consolidation phase after rebounding sharply from the $3,959 low. Price is now fluctuating around the 20-period moving average, suggesting bullish momentum has slowed. The moving averages have converged, indicating the market is awaiting fresh direction.

After reaching the $4,090 area, gold has failed to extend its gains and is now forming a tight consolidation pattern. The inability to establish higher highs reflects weakening buying momentum, although buyers continue to defend support above $4,040.

Gold remains in a short-term consolidation. A break above $4,090–$4,120 would strengthen the recovery toward $4,160, while a break below $4,040 would increase the risk of another decline toward $4,000 and potentially the recent low at $3,959.

Gold 1H Chart

Source: STARTRADER app | Gold trades lower as rate hike expectations continue to weigh on the precious metal

Brent Technical Analysis

Brent crude remains under bearish pressure despite stabilizing near recent lows. Price is trading around the 5, 10 and 20-period moving averages. The longer-term trend remains negative, with the 20-period MA still flattening after an extended decline.

Following the sharp selloff, Brent has entered a sideways consolidation between approximately $71.60 and $73.80. Buyers have repeatedly defended the $71.60 support zone, but upside attempts continue to fade beneath nearby resistance. The compressed moving averages indicate weakening momentum and increasing indecision.

The market remains neutral-to-bearish in the short term. A sustained move above $73.80 could encourage a recovery toward $74.60, while a break below $71.63 would likely resume the broader downtrend toward $71.00 and $70.00.

Brent 1H Chart

Source: STARTRADER app | Oil trades at pre-war levels as tensions ease in the Middle East

Dow Jones Technical Analysis

Dow Jones remains in a constructive short-term uptrend despite recent consolidation. Price continues to trade above the 20-period moving average, while the 5-period MA has crossed back above the 10-period MA, indicating improving bullish momentum.

The moving averages have begun to flatten after last week’s advance, suggesting the market is entering a period of consolidation before attempting its next directional move.

The short-term bias remains bullish while price holds above 52,100. A breakout above 52,817 would confirm trend continuation and expose fresh record highs, while a break below 51,900 could trigger a deeper corrective move toward 51,400.

Dow Jones 1H Chart

Source: STARTRADER app | Dow Jones trades near record highs, but remains in sideways

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.