Gold has fallen sharply today and is below long term trend line support at $1617.50 (now resistance on the weekly chart above). The 100 week MA comes in at the $1512 and the 38.2% of the move up from the 2000 low comes in at $1446.59. These would be longer term support targets if the price can keep it’s bearish momentum and bias (i.e., stay below the broken trendline).
The next support comes in at $1585.50 area where the bottom channel support line is found (see daily chart above).
Looking at the hourly chart to gauge intermediate support/resistance, the move down today has accelerated the trend to the downside (see chart below). The price broke below channel support at the $1609.81 and this area will be closer topside resistance on a correction back higher today. Stay below this line, and the bears remain in firm control. A move above has the “correction zone” (yellow area) between the $1614 and $1618 (38.2-50% of the sharp move down today). This is also in the area of the broken trendline on the weekly chart. Sellers would not want to see the price move back above this area.
