The precious yellow metal could not hold onto resistance at 1283.77 and slid below.
It has also slid below upper Bollinge band at 1278.5111 levels.
The collapse below 7 & 21DMA and breaks bellow supports at 1234.84.
Both leading oscillators signal intensified selling momentum. , curves have been powerful in suggesting current to prevail as they reached oversold territory but no trace of recovery.
On broader perspective, currently a likely at peaks of intermediate upswings on monthly plotting signifies the losing momentum in those upswings.
While remains in trajectory that is likely to drag down further.
Trend has seen more than from the highs of 1920.80 in recent history, so what else is needed as it has now rejected below 50% fibo retracements and tight resistance at 1286 to target towards 1200.
Bears in Gold has wiped off buying interest and been tumbling consecutively from last couple of days but testing support at around 1225 levels firmly.
Those who suspects sentiments in bullion markets can speculate yellow metal with option tunnel construction for the targets at 1200 levels.
Currently trading at 1234 but no wonder if it hits 1225 or below zone sooner or later.
We rely on and and as they pop up with overbought pressures so far, so smart way to approach this commodity is to deploy the option tunnel using ATM puts is structured as a binary version of a conventional put spread, i.e. long delta puts with higher strikes while writing the lower strikes for above mentioned targets on either side.
Therefore an In-The-Money tunnel would be formed of an In-the-money -0.71 delta put below the spot rates less an Out-Of-The-Money put above spot rates. The delta of -0.51 on combined position with theta is preferred to be near zero.