Gold Technical Analysis: rebounds sharply from a descending trend-channel support
• After hitting fresh YTD lows, the precious metal stages a solid rebound from a short-term descending trend-channel support and amid near-term oversold conditions.
• The up-move, however, hasn't been supported by short-term technical indicators and could be solely attributed short-covering led by a modest USD retracement.
• Hence, the descending trend-channel resistance is likely to cap any subsequent up-move, which if conquered might increase prospects for additional near-term recovery.
Spot Rate: $1248.69Daily Low: $1237.97Trend: Bearish
ResistanceR1: $1254.23 (descending trend-channel hurdle)R2: $1257.11 (10-day SMA)R3: $1266.65 (horizontal zone)
SupportS1: $1241.90 (overnight closing level)S2: $1237.97 (multi-month lows set earlier today)S3: $1236.52 (Dec. 12, 2017 swing low)
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