Gold Breaks Support Levels!
Gold was making good progress in July and August 2020 after breaking above what was then the
all-time high at $1920. It was after hitting the $2000 major round number that we saw a change
in the behaviour of price.
By September 2020, price not only moved back below $2000 but also back inside the consolidation
zone. Despite this, there was support below price from the weekly 50 simple moving average and
the daily 200 simple moving average.
The weekly 50 simple moving average was a key support level because historically it has bounced off
this level a number of times but it failed to hold price up on this occasion.
We are starting to see bearish moves in Gold on the daily timeframe and our proprietary trend filter
has turned red indicating that there is weakness in price.
The next important level of support below price is the $1500 round number which is some distance
away from price.
Should we continue to see a pattern of lower lows and lower highs on the daily timeframe then price
may continue on a downward trend for some time within the consolidation zone to the support low.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
all-time high at $1920. It was after hitting the $2000 major round number that we saw a change
in the behaviour of price.
By September 2020, price not only moved back below $2000 but also back inside the consolidation
zone. Despite this, there was support below price from the weekly 50 simple moving average and
the daily 200 simple moving average.
The weekly 50 simple moving average was a key support level because historically it has bounced off
this level a number of times but it failed to hold price up on this occasion.
We are starting to see bearish moves in Gold on the daily timeframe and our proprietary trend filter
has turned red indicating that there is weakness in price.
The next important level of support below price is the $1500 round number which is some distance
away from price.
Should we continue to see a pattern of lower lows and lower highs on the daily timeframe then price
may continue on a downward trend for some time within the consolidation zone to the support low.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
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