Strengthening dollar and ever rising stock markets have been depressing TVC:GOLD
. It's still trading within the upward trend, but the signals that bears are making a come back are everywhere. First, 10, 20 and 50 MA are aligned in a downward trend order. Second, looking at the support and resistance
has failed to stay above the Support level
1 and finished forming a bearish flag
in the last trading session. BUT the most important support levels is the Support Level
2 at 1263 price, which is also July - Sep Fib 61.8% retracement
. If it breaks below this level, it could send the price down South to the 50's level and below. BUT to turn into a full blown bear rally it has to fall through the lower channel line.