Gold's bulls are penetrating two-month downtrend

Risk-averse sentiment among market participants made the precious metal increasingly buoyant on Monday. After piercing through the Nov-Dec downtrend line, gold approached a vital resistance in face of the weekly R2, monthly R1, upper Bollinger band and 55-day SMA at 1,084. However, the daily close was fixed around 1,075 and below the two-month trend-line. However, Tuesday morning we are seeing extra bullish momentum, which is pushing the bullion higher. Any consolidation above 1,075 will expose the 1,084 supply zone. Moreover, the bulls are getting additional support from monthly/weekly PPs at 1,065.  

Yesterday the portion of SWFX bullish positions deteriorated back to 54%, down from 56% where the share of the longs stood since Thursday of the previous week.