Gold Technical Analysis: Path of least resistance is on the higher side

• Gold witnessed a bull flag breakout (bullish continuation pattern) on Monday.
• The metal's rebound from the confluence of ascending 50-hour moving average (MA) and the upper end of bull flag (now a support) my recharge engines for a break above $1,266 (Monday's high).
• Further, the 50-hour MA is holding above the 100-hour MA, and the 100-hour MA is located above the 200-hour MA, indicating the path of least resistance is to the higher side.

Hourly chart

Spot Rate: $1,259

Daily High: $1,260

Daily Low: $1,257

Trend: Bullish

Resistance

R1: $1,261.14 (Jue 21 low)

R2: $1,272 (June 25 high)

R3: $1,282 (May 21 high + bull flag breakout target as per the measured height method)

Support

S1: $1,257 (5-day moving average)

S2: $1,251 (July 5 low)

S3: $1,238 (July 3 low)