Gold's five-hour chart confirmed a bearish reversal after price broke below key support on a volume spike. The metal traded at $4,462.18, down 3.04% intraday, and a fully formed double top now points sellers toward $4,270.
Gold's five-hour chart confirmed a bearish trend reversal after the metal plunged below key support on a volume spike, according to Investing.com. The metal traded at $4,462.18, down $139.71, or 3.04% intraday.
Gold broke decisively below its 20- and 50-period moving averages, locking in a short/medium-term bearish reversal. The plunge carried price below $4,660 and $4,589, levels bulls had previously defended.
Momentum indicators point lower
The Relative Strength Index reads 33.6, nearing oversold territory but not yet extreme, leaving room for continued downside or a brief relief rally. The MACD stands at -8.32, reflecting accelerating bearish momentum. The SuperTrend indicator flashes a sell signal, marked down at $4,657.
A double top confirms the pattern after price topped out at $4,755. The chart also produced a strong bearish Marubozu candle, a sign of aggressive, high-volume selling.
Downside targets and trade setups
Bears are eyeing three Fibonacci retracement targets on the way down. The first is $4,450, the 38.2% retracement. The second is $4,355, the 50% retracement. The third is $4,270, which lines up with SMA 200 and the 61.8% retracement. Aggressive bears could enter around $4,508 with a stop at $4,660. Conservative bears could instead wait for a rally toward $4,580 before entering, with the same stop.
Where bulls could make a stand
A high-volume support node near $4,400 could attract buyers for a relief bounce, though any long position stays risky until a solid close back above $4,660. The zone between $4,450 and $4,566 is prone to chop, with new positions at risk of getting whipsawed. An RSI near oversold levels could still spark a short-lived rebound, but sellers currently hold the advantage.
Source: Commodities & Futures News
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