Gold technical analysis: Looking to retest key support before capitalizing on continuation breakout

• Gold's daily chart shows a pennant breakout.
• Prices will likely bounce from key support at $1,439, reinforcing the bull view.

Gold is currently trading at $1,443 per Oz, having hit a fresh 2019 high of $1,452.

The yellow metal is trimming gains, possibly due to overbought conditions reported by the hourly and 4-hour chart indicators and the pullback could be extended further to the former resistance-turned-support of $1,439 (June 25 high).

With the 14-day relative strength index of 67.00 signaling a room for the rally, the crucial support at $1,439 will hold, reinforcing the bullish view put forward by the pennant breakout on the daily chart.  

A pennant breakout indicates a resumption of the rally from the May 21 low of $1,261. As a result, $1,500 could come into play over the next few weeks.

The short-term bullish case would be invalidated if prices drop below the June 17 low of $1,400. That could happen if the U.S. Federal Reserve surprises markets by keeping rates unchanged on July 31.

Markets are full-priced for a 25 basis point rate cut.

Daily chart

Trend: Bullish

Pivot point