- Gold holds steady just below a one-month-old descending trend-line resistance.
- The set-up supports prospects for an eventual breakthrough the mentioned hurdle.
- Bulls might then aim to test the $1951-52 hurdle en-route the $1968-70 supply zone.
- Bullish positions should be accompanied by appropriate stop-loss near the $1900 mark.
Gold built on its recent bounce from 100-day SMA support and shot to three-week tops on Monday. The momentum, however, faltered near a resistance marked by a near one-month-old descending trend-line, which should now act as a key pivotal point for short-term traders. Technical indicators on the daily chart have just started moving into the positive territory and support prospects for an eventual breakthrough the mentioned barrier.
A sustained move beyond will be seen as a fresh trigger for bullish traders and pave the way for a move back towards the $1968-70 supply zone, with some intermediate resistance near the $1951-52 region.
On the flip side, the $1910-$1905 area now seems to protect the immediate downside. Failure to defend the mentioned support might turn the yellow metal vulnerable to slide back towards challenging the 100-DMA support, currently near the $1866 region. Hence, fresh bullish positions should be accompanied by appropriate stop-loss near the $1900 mark.