Strengthening dollar and ever rising stock markets have been depressing
GOLD
. It's still trading within the upward trend, but the signals that bears are making a come back are everywhere. First, 10, 20 and 50 MA are aligned in a downward trend order. Second, looking at the support and resistance levels GOLD has failed to stay above the Support level 1 and finished forming a bearish flag in the last trading session. BUT the most important support levels is the Support Level 2 at 1263 price, which is also July - Sep Fib 61.8% retracement. If it breaks below this level, it could send the price down South to the 50's level and below. BUT to turn into a full blown bear rally it has to fall through the lower channel line.
GOLD
. It's still trading within the upward trend, but the signals that bears are making a come back are everywhere. First, 10, 20 and 50 MA are aligned in a downward trend order. Second, looking at the support and resistance levels GOLD has failed to stay above the Support level 1 and finished forming a bearish flag in the last trading session. BUT the most important support levels is the Support Level 2 at 1263 price, which is also July - Sep Fib 61.8% retracement. If it breaks below this level, it could send the price down South to the 50's level and below. BUT to turn into a full blown bear rally it has to fall through the lower channel line.
Trade active
Trade closed: stop reached