Technical Analysis: Gold bears eye $1,764 on fortnight-old support break

After multiple failed attempts to settle beyond the 200-SMA, gold prices conquered a two-week-long ascending support line. The bearish impulse takes clues from downbeat MACD signals and a slump in the RSI line. This helps the gold bears to aim for the area comprising multiple supports marked since November, around $1,764. It should be noted, however, that $1,784 may work as an immediate rest-point after the fast selling. In a case where gold bears dominate past $1,764, the monthly low near $1,751 and 61.8% Fibonacci Expansion (FE) of November-December moves, around 1,742, will be on the charts.

Meanwhile, corrective pullback may aim for the $1,800 threshold before targeting again for the 200-SMA level of $1,805. Even if the gold bulls retake $1,805, the support-turned-resistance line mentioned above, close to $1,815, will be a crucial hurdle for the traders to watch before turning optimistic on the metal. Following that, double tops of July and September near $1,834 will be in focus. To sum up, gold sellers are finally in but the year-end sluggishness may restrict the quick moves.

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