- neck line

Analysis

• Gold prices have been capped by resistance around $1,382 and have struggled to get above and hold above the UTL.
• The stochastics have been pushing higher quite strongly but prices have failed to follow. The risk is that the stochastics now run out of upward momentum and turn lower, which could then start to apply downward pressure on prices.
• We are still on the lookout for this rebound to turn into a bear flag - if it does so, it could create a 'Head and Shoulders' (H&S) formation. The nearby support line is at $1,362.
• The neckline of the H&S pattern is at $1,336 so it is now quite far away- so while it is not a looming threat for now, we need to keep an eye on it because it would have some bearish implications if it were triggered.