Technical Analysis – Gold shapes footing above MAs and 1,800 handle

Gold has somewhat stabilized around the red Tenkan-sen line after its latest rally fell short of the 1,847 barrier. The advancing simple moving averages (SMAs) are nurturing the uptrend from 1,678, while the Ichimoku lines are indicating slight dwindling in the positive drive.

The oscillators are suggesting short-term negative pressures are gaining the upper hand. The MACD, in the positive region, is easing below its red trigger line, while the RSI is set to cross below its 50 level. The stochastic oscillator has adopted a negative tone and is promoting additional downside price moves.

If the precious metal gains strong traction off the 1,818-1,826 support zone, buyers could encounter initial upside friction near the three-month high of 1,845 and the adjacent barrier of 1,847, identified on February 11. Successfully overstepping these obstacles, the price may then test the 1,855 peak before buyers aim for the 1,869-1,876 boundary, which is also linked with the January-February resistance zone.

In order to dent the uptrend, sellers would need to direct the price below the 1,818-1,826 base and the blue Kijun-sen line just beneath. The bears may then meet the 1,812 low and the bottom of the Ichimoku cloud. Should they fail to impede the retracement from gaining pace, the 50-period SMA at 1,807 and the uptrend line - pulled from the 1,678 trough - could challenge the move ahead of the 1,800 hurdle.

Summarizing, gold is retaining a neutral-to-bullish tone above the SMAs and the uptrend line. A clear dip below the 1,818 mark could strengthen negative pressures.

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