Gold Technical Analysis: Any further positive move might still be seen as a selling opportunity

• Gold gains some traction for the third consecutive session on Tuesday.
• Any further positive move might still be seen as a selling opportunity.

Gold edged higher for the third consecutive session on Tuesday, albeit lacked any strong follow-through and remained well below last week’s swing high near the $1486-87 region, or over one-month tops.

This is followed by a confluence hurdle near the $1490 region – comprising of 100-day SMA and the top end of an ascending trend-channel – and should act as a key pivotal point for short-term traders.

Given the commodity’s recent retracement from multi-year tops, the mentioned channel seemed to constitute towards the formation of a bearish continuation – flag pattern on the daily chart.

The negative outlook is further reinforced by the fact that the metal has been trending lower along a descending trend-channel over the two-month or so, support prospects for further downside.

Hence, any further positive move might still be seen as an opportunity to initiate some fresh bearish positions and fizzle out rather quickly/remain capped near the $1490 confluence resistance.

On the flip side, immediate support is now pegged near the $1472 area, below which the metal is likely to accelerate the slide towards challenging the trend-channel support near the $1463-62 region.

Gold daily chart