Gold prices rebounded off the 2,150 support level after creating a bearish correction from the strong rally towards the fresh all-time high of 2,195 on Friday in the 4-hour chart.
The technical oscillators are showing some contradicting signs as the MACD is losing momentum beneath its trigger line. However, the stochastic is gaining some momentum following the bullish crossover within the %K and %D lines in the oversold territory.
If the market continues to the upside, then the market could meet immediate resistance at the flat 20-period simple moving average (SMA) at 2,171 before challenging the crucial 2,185 bar. Even higher, the record peak of 2,195 may halt bullish movements.
On the flip side, a dive below the 2,150 support and the 23.6% Fibonacci retracement level of the upward wave from 1,984 to 2,195 at 2,145 could send the price until the 50-period SMA at 2,139. Steeper decreases could open the door for the 2,123 region and the 38.2% Fibonacci of 2,114.
All in all, the yellow metal is strongly bullish despite the latest downside move in the 4-hour chart. A move below the 200-period SMA may switch the outlook to a more neutral one.
