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Short

No surprise if gold hits $1000 mark/troy ounce

FX:XAUUSD   Gold/U.S. Dollar
441 0 8
The precious metal has tumbled surpassing all major support levels at around 1,138 (61.8% fibo levels), 1,071.43 (4 and half months lows), and today it has also broken 1048.23 (baseline of descending triangle) and tendency is still dipping below.

Robust volume build ups are observed on every down streak on monthly charts, if it does not mange to hold onto the current levels ahead of ECB's stimulus programme then we wouldn't be surprised to see $1000 event.

We believe, today even if it makes an attempt of jump above baseline again (at 1048.23) but bears could not resist to hold these levels to push it southwards at 1000 (spot) marks slipping towards 78.6% fibo targets.

RSI confirms bearish trend continuation: The pair at this psychological juncture testing supports, while RSI still evidences downward convergence with sharp declines both on weekly and daily charts (Currently, trending around 29.4987 while articulating), so this indicator justifies current prices dips.

Stochastic supports bearish momentum: To substantiate these price slumps, slow stochastic curves view on weekly charts signifies to remain in sync with the standpoint offered by RSI . %D line crossover is maintaining even below 20 levels which is oversold zone bolsters more selling pressures, (Currently, %D line is at 11.9945 and %K at 1.7148 while articulating).

Hence, contemplating above technical indications, it is advisable to short rallies for targets of 1030.10 or even up to 1000 levels on medium term basis with strict stop loss of 1070.50 levels.
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