Breaks below the 200 week MA
The price of gold took another step lower in trading today, and in the process, moved below the 200 week MA at $1234.36. The current price is trading at $1227.85, down $13 on the day. That is just above the low at $1226.16.
The fall below the 200 week MA is the first time below that level since the July 21, 2017 week (nearly 1 year ago from today). It also increases the bearish bias technically.
For shorts, stay below is bearish. Move back above and there could be more profit taking.
Drilling to the hourly chart, the price high today, took a quick look above the 100 hour MA (blue line in the chart below), but that move failed. The fall below a lower floor area also was near the key 200 week MA (at $1234). The fall below both technical levels, was enough to kick the bears in full sell mode.
It is about getting back above the 200 week MA now. If that can't be done, the sellers/bears have the go-ahead to probe lower.
