After falling through 1700 overnight, gold continued to sell off enthusiastically all day, finding tentative support at 1690 but closing below 1700 for the first time since 2 November.
Gold broke the rising trendline decisively, which has bearish implications if the market cannot get back above the line, currently at 1706 (Feb contract), in short order.
A test of the November low at 1674 looks to be on the cards as we see no signs of a bottom yet - none of the indicators we follow are very oversold yet and there are no bullish divergences apparent.
If 1674 cannot hold then a retest of the 200 DMA at 1665 and a sell off to 1630 becomes a compelling outcome.
For our subscribers at www.goldtradingexperts.com, today's video looks at our thoughts on the most likely scenario that we see playing out and our strategy for our next trade.
Gold broke the rising trendline decisively, which has bearish implications if the market cannot get back above the line, currently at 1706 (Feb contract), in short order.
A test of the November low at 1674 looks to be on the cards as we see no signs of a bottom yet - none of the indicators we follow are very oversold yet and there are no bullish divergences apparent.
If 1674 cannot hold then a retest of the 200 DMA at 1665 and a sell off to 1630 becomes a compelling outcome.
For our subscribers at www.goldtradingexperts.com, today's video looks at our thoughts on the most likely scenario that we see playing out and our strategy for our next trade.