Both the 55 and 200 dma’s were in close proximity at 1299 and 1297 and they’ve both been given a black eye today after holding up yesterday. The bears are in charge, even more so after the break through 1300 and are trying to inflict as much pain as possible.
We’ve seen a low of 1291 with the next downside target is the 50 fib of the 1180/1392 swing at 1287 but the longs haven’t given up on the moving averages just yet.
Gold daily chart 27 03 2014
A failure to close below will give the longs a chink of light and a close above 1300 may become a decent platform to form a short term bottom.
I’m toying with a long around here but may wait to see how the action unfolds. If another test of the 200 dma holds then I may jump in.
