Gold technical analysis: Under pressure after bearish outside day, eyes sub-$1,500 levels

• Gold is flashing red after Friday's bearish outside day candle.
• The 4-hour chart shows the rising channel breakdown and bearish indicator divergence.

Gold is currently trading at $1,508 per Oz, representing a 0.29% drop on the day.

The yellow metal created a bearish outside day candlestick pattern on Friday, which occurs when the trading range engulfs preceding trading day's high and low.

That candlestick pattern is considered an early sign of bullish-to-bearish trend change, especially if it appears following a notable rally, which is the case here.

Further, the 4-hour chart shows a bearish divergence of the relative strength index (RSI) and a rising channel breakdown.

Hence, a pullback to the Aug. 13 low of $1,480 looks likely. The bearish case would weaken if prices find acceptance above Friday's high of $1,528.

Daily chart

4-hour chart

Trend: Pullback likely

Pivot points