Gold has been holding in a bearish sloping channel over the last six months, developing beneath the simple moving averages (SMAs) and the Ichimoku cloud in the daily timeframe.
Technically, the stochastic oscillator posted a bullish crossover within the %K and %D lines in the oversold zone, while the RSI is pointing up in the negative territory, indicating an upside retracement in the very short-term.
However, if the price fails to jump above the 1,817 resistance, this could pull the price back towards the 1,764 support and near the lower surface of the descending channel at 1,736. Steeper decreases could open the door for the 1,668-1,704 zone, increasing the selling interest.
Alternatively, a successful attempt above 1,817 could drive the market until the SMAs within the 1,843-1,862 zone ahead of the upper bound of the channel at 1,925. More gains could attract investors’ attention to 1,965 and 1,993 before touching 2,017, switching the market to neutral.
In conclusion, the yellow metal is creating lower highs and lower lows in the long-term timeframe and only a jump above the all-time high of 2,074.89 may change this outlook.
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