Gold technical analysis: Set-up remains tilted in favour of bearish traders
|- The recent recovery move falters near $1475 support-turned-resistance.
- A subsequent slide back towards $1455 now looks a distinct possibility.
Gold failed to capitalize on its recent recovery move from three-month lows, or a support marked by 38.2% Fibonacci level of the $1265-$1557 bullish move and came under some selling pressure on Friday.
The positive momentum stalled near a confluence support breakpoint-turned-resistance around the $1475 region, which comprised of 100-day SMA and the lower end of a one-month-old trading range.
The commodity has now reversed the previous session's positive move to over one-week tops and is currently flirting with daily lows, near the $1465-64 region amid renewed US-China trade optimism.
Meanwhile, technical indicators on the daily chart maintained their bearish bias and have again started gaining negative traction on hourly charts, suggesting the resumption of the downward trajectory.
Hence, a follow-through weakness, possibly towards testing $1455 intermediate horizontal support en-route the $1446-45 region, now looks a distinct possibility ahead of the US monthly retail sales data.
On the flip side, the $1475-76 zone might continue to act as an immediate strong resistance, above which a bout of short-covering has the potential to lift the precious metal back towards the $1490 region.
Gold daily chart
Trend: Bearish
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