Gold Technical Analysis: Corrective rally is stalling

• Gold's corrective rally from the 12-month low of $1,211 is running out of steam.
• The yellow metal has created a rising wedge-like pattern on the hourly chart and the 14-hour relative strength index (RSI) has rolled over from the overbought territory.
• Hence, a minor price pullback could be in the offing before technical recovery gains more ground, as indicated by the bullish price-RSI and bullish price-stochastic divergence.

Hourly chart

Current price: $1,232

Daily High: $1,235

Daily Low: $1,230

Trend: Pullback to be short-lived

Resistance

R1: $1,235 (200-hour moving average)

R2: $1,238 (July 3 low)

R3: $1,245 (July 17 high hurdle on the hourly chart)

Support

S1: $1,227 (100-hour moving average)

S2: $1,224.50 (rising wedge support + 50-hour moving average)

S3: $1,211 (July 19 low)