Gold broke below recent support on its 5-hour chart and trades at $4,115.65. The analysis flags $4,082.35 as the floor to watch and $4,200.64 as the level bulls must reclaim.
Gold trades at $4,115.65 after a bearish breakdown below recent support on its 5-hour chart. According to Investing.com, the technicals point to more downside risk if $4,082.35 does not hold.
Indicators line up against the bulls
Price trades below the 20, 50, and 200 SMAs, and the SuperTrend resistance sits at $4,200.64. Meanwhile, the MACD lines are dropping, with –12.60 below –9.47, which the analysis calls a classic sign of accelerating negative momentum.
Momentum is not fully one-sided, however. The RSI sits at 36.2, close to oversold. That level sometimes sparks a short-lived bounce, the source says, but it is not strong enough to call a reversal.
Downside targets and a no-trade zone
The analysis sketches a bearish setup with targets at $3,993.80, $3,900 and $3,800. It places a stop loss at $4,205.00, and describes $3,993.80 as a major swing low.
The range between $4,082.35 and $4,159.13 is a no-trade zone in the analysis, where direction is unreliable until a new range winner emerges. Only a clean move back above $4,200.64 would break the bear grip and flip the script bullish.
The source also flags a possible bear trap: a spike below $4,082.35 that rapidly recovers is sometimes the cue for fast reversals.
Source: Investing.com
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