Gold Technical Analysis: corrective rally gathering steam

• Gold (XAU/USD) hourly chart shows the upside break of a falling channel.
• A corrective rally will likely gather steam if metal finds acceptance above the 50-hour moving average.
• The long-run outlook remains bearish, the metal looks set to test $1,240.

Hourly chart

Chart source: Netstation

Current Price: $1,267

Daily High: $1,269

Daily Low: $1,266

Trend: Corrective rally likely

Resistance

R1: $1,269.30 (50-hour MA)

R2: $1,274.12 (100-hour MA)

R3: $1,282 (May 21 low)

Support

S1: $1,261.14 (previous day's low)

S2: $1,240 (double top breakdown target)

S3: $1,236.45 (Dec. 12 low)