50% of the move up from July 16 comes in at $1935.23
The price of gold is racing lower as longs exit below the $2000 level. Technically, the price has also fallen away from the 100 hour MA (there was a feeble, failed break higher yesterday that turned the beat around) and tumbled below the 200 hour moving average at $2007.41.
The next stop was through the 38.2% retracement of the move up from the July 16 low at $1968.38 (was also near swing lows from August 4).That level will be eyed as close risk now. Stay below is more bearish. The $2000 level is another risk level as well.
The break of the 38.2%, has left the 50% retracement at $1935.23 as the next key target. The low has reached $1938.88 so far, a few bucks above that level. There is some modest bounce being seen currently with the price back up at $1955 as I type.
Taking a broader look at the daily chart, recall the 2011 all time high reached $1921.17. A move below that level would not be good for the buyers technically. Having said that it could also work as a support target too for dip buyers. Key level. Keep it in mind if the sellers continue to probe/liquidate the downside.
Silver is also getting crushed today. It is currently down -$1.78 or -6.12% at $27.34.
