Trend support in danger
The new record high on Monday from $ 2,956 completed an advance of $ 373 or 14.5% when measured from December swing low at $ 2,582. Note that the rise angle of the trend has risen after that low and subsequent recovery of the 20-day and 50-day MAS. An upward outbreak of a short resistance trend line also helped to further improve the demand. As the trend continued to rise after the December low, the degree of change in the price of gold increased. This dynamic can also be seen by widening the spread between the 20-day Mon and 50-day MA.
Bearish Potential
The accelerated advance is included in an increasing trend channel that shows the underlying corner of the climb for the larger bull trend pattern. That is why a decisive trendomage signal could ultimately see a support test around the 50-day MA or the lower trend line. In particular, there is a bearish divergence in the relative strength indicator (RSI) and it is trending after some time in Overbought area.
If 20-day MA fails, the 50-day MA will be a target
After the recovery of the two advancing averages, there has been no pullback to test those lines as support until today when the 20-day MA was tested. If the 20-day line does not hold, the 50-day line will be a potentially target. This does not mean that it will be achieved, but it could certainly be.
Other price levels that can see support are the earlier trend high at $ 2,790 and a lower earlier resistance zone that starts around $ 2,726. However, if it is reached, this shows a failure of supporting both the 50-day MA and the Uptrend line. That would be Beararish and open the possibility to test the lower trend indicators represented by the 200-day MA at $ 2,579 and an Uptrend line.
Look for a look in all the economic events of today Economic calendar.