Gold Technical Analysis: Poised to retest ascending trend-channel resistance near $1270 area

   •  The precious metal's corrective slide on Friday, from near six month tops, stalled ahead of an important confluence resistance break-point now turned support.

   •  The mentioned support comprises of the very important 200-day SMA and 61.8% Fibonacci retracement level of the $1309.30-$1160.19 mid-June to mid-August downfall. 

Gold daily chart

   •  Meanwhile, the recent upsurge over the past four weeks has been along a short-term ascending trend-channel and the price action reaffirms last week's bullish breakout.

   •  Bullish technical indicators on the daily chart are still far from being in the oversold territory and thus, support prospects for an extension of the bullish momentum. 

   •  The up-move, however, is likely to take a brief pause near the trend-channel resistance, currently near the $1270 region, amid year-end thin liquidity conditions.