The price of gold is extended to a new session lows and in the process has moved below a trendline at $1719.61 (and has stayed below that level). The price is also moved below its 100 hour moving average currently at $1713.50. The low price for the day reached $1708.37. We currently trade right around the 100 hour moving average.
The price of the precious metal has been trending to the upside since April 1 when the low reached $1569.07. The high price was on April 14 at $1747.36. The last time the price was below its 100 hour moving average was back on April 2 at around $1604.
If the price can stay below the 100 hour moving average, we could see further downside corrective momentum with the rising 200 hour moving average at $1687.09 as the next target. The 38.2% retracement of the move up from April 1 comes in at $1679.26.
If the sellers are to take more control from the buyers, getting below both those levels would be the minimum down targets.
For now, the trend line break and the 100 hour potential break is putting a downward tilt on the precious metal. Close risk for sellers calling the tops now, is the broken trend line currently at $1719.61. Stay below and the sellers are winning the battle. Move above, and the try fails.