Bearish sentiment continues to build on the gold chart with the March contract now gathering momentum to the downside, helped along by the classic “death cross” technical signal which is now in place.
The death cross is the crossover between the 50 ma and the 200 ma, clearly signalled on the chart and also reinforcing the recent price resistance in the $1684 per ounce level.
In overnight and early trading on Globex the gold price has pushed lower still to trade at time of writing at $1622.50 per ounce, moving through the support level at $1627 of early January. This bearish sentiment is also clearly evident across the other indicators, namely the heat map, selling volume in both our time frames, and both trends also echoing this negative view.
In addition, the market also posted an isolated pivot high on Wednesday at $1655 per ounce, which is adding further pressure to the downside. ...