But first, let’s chart the development and pinpoint this key pivot:
We’re seeing @GC (Gold) on the Hourly Chart with a short-term Fibonacci Grid from low to high.
The 38.2% Fibonacci Retracement overlaps the $1,215 area which is where price is trading currently.
We’ll see in a moment that price broke down from a key Daily Chart level into this short-term make-or-break target.
A bearish pathway opens toward $1,200 and $1,180 if beneath $1,215 while a “support bounce” reversal triggers on a rally today or tomorrow “up away from” $1,215.
Here’s the Daily Chart breakdown and price structure:
Gold tumbled into a new Daily Downtrend from $1,400 toward $1,120 ahead of a reversal higher in December.
Price achieved the gold of testing the underside of the falling 200 day SMA near $1,265.
From there, negative divergences into this key pivot set the stage for a pullback “down away from” $1,260.
We’re seeing a breakdown beneath the 20 and 50 day EMAs which take us again to our short-term Fib Target.
Focus on the intraday chart ($1,215) and note the downside potential if buyers don’t step in to buy Gold here.
On the ETF side of things, the SPDR Gold Trust ETF (NYSE:GLD) fell $0.27 (-0.23%) in premarket trading Wednesday. Year-to-date, GLD has gained 5.63%, versus a 6.03% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of AfraidToTrade.com.