Technical Analysis: Gold clears five-month-old resistance line, eyes $1965

Technical Analysis: Gold clears five-month-old resistance line, eyes $1965

Having battled with 100-day SMA during the end of 2020, gold prices kick-start 2021 on a positive front while crossing a multi-day-old hurdle. Although overbought RSI conditions may challenge the bulls, the November high near $1,965 is in a hand’s reach due to the sustained trend line breakout. During the quote’s upside past-$1,965, the $2,000 threshold could lure the bullion buyers ahead of challenging 2020 top near $2,075. It should, however, be noted that a late-August high near $2,015 can offer an intermediate halt on the way to a multi-month high.

Should upside momentum fails to print a daily closing beyond $1,910 resistance-turned-support, gold sellers may seek chances of re-entry. Though, a 100-day SMA level of $1,895 will validate further downside. While extended weakness past-$1,895 may not refrain from challenging the mid-December low near $1,818, any further downside can target the November bottom surrounding $1,765. Overall, gold recently cleared a key upside hurdle and is up for a fresh north-run provided it manages to keep the breakout and crosses the immediate resistance.

Trade Forex with MTrading

Join us on FB and Twitter to stay updated on the latest market events.