Gold stayed below the 100 and 200 hour MAs today (blue and green lines in the chart above) and then fell below what has been a consolidation floor. The combination gave traders reasons to take profit/sell and the sharp fall has taken the price toward the next support targets at recent highs and the 38.2% of the trend move higher from the August 30th low. The retracement level comes in at 1733.18 currently.
Traders should now use the old floor as resistance now (stop). The 1733.18 should give intraday traders a reason to buy but be on the lookout for a break and further stops. The move seems purely a technical move.
