Technical Analysis: Gold drops to fresh five-month low inside falling channel
Having failed to clear a three-week-old support-turned-resistance, gold prices trade near the fresh multi-day low below $1,800. Although a seven-day-long falling channel keeps the bullion sellers hopeful, oversold RSI conditions suggest a bounce off the channel's support, at $1,745 now. Should the gold bears refrain from respecting the $1,745 support, the $1,700 round-figure and June's low near $1,675 will be the key rest-points to watch. Overall, the trading sentiment favors downside momentum but intermediate bounces can't be ruled out.
Meanwhile, the aforementioned immediate resistance line around $1,788 precedes the channel's upper line, currently around $1,796, to limit the yellow metal's short-term upside. It should, however, be noted that the $1,800 threshold and November 09 low near $1,850 can challenge the gold bulls afterward. In a case where the quote remains firm above $1,850, the 200-SMA level of $1,882 should gain the market's attention.FB and Twitter to stay updated on the latest market events.