Gold Technical Analysis: Steadily climbs to session tops, upside seems limited
|- Gold reversed an early dip and has now turned positive for the day.
- Any meaningful uptick might still be seen as a selling opportunity.
Gold extended the overnight rejection slide from 100-day SMA resistance and witnessed some follow-through selling during the Asian session on Friday.
The precious metal, however, managed to reverse the early dip and was last seen trading near session tops, just above the $1470 region.
Meanwhile, technical indicators on hourly charts have been gaining some positive traction and support prospect for additional intraday gains.
Looking at a slightly larger timeframe, the commodity has been trending lower along a 2-1/2-month-old descending trend-channel formation on the daily chart.
This coupled with repeated failures near the 100-DMA suggests persistent selling bias at higher levels and points to further near-term weakness.
Moreover, oscillators on the daily chart have struggled to gain any meaningful traction and warrant some caution for bullish traders.
Hence, any subsequent positive move might still be seen as an opportunity to initiate fresh bearish positions amid renewed trade optimism.
A sustained break below weekly lows, around the $1460-59 region, will reaffirm the bearish outlook and set the stage a slide towards the $1450 region.
The downfall could further get extended towards the $1445 region (November monthly swing lows) en-route the trend-channel support, near the $1435 area.
Gold daily chart
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