Richard Perry
Independent Analyst
It has to be said, it does not look good for the gold bugs now. The sharp flash sell-off on Monday seems to have been validated as despite the positive trading day yesterday there was hardly any impact on the massive decline. Furthermore, the price was selling off into the close last night and has continued lower today taking it back below the low from yesterday. Technical indicators subsequently look bearish across the board and with the price back below the near term support at $1094.25 as shown on the hourly chart, the sellers are building for a test of the spike low at $1088.00 again. The intraday hourly chart also shows that the rallies in the past couple of days have been sold into at lower levels which has left resistance at $1102.90, yesterday’s high at $1109.50 and also the original rebound high at $1118.70. The outlook is terrible and pressure on $1188.00 will continue today. The key low from March 2010 comes in around $1085, whilst the real support is not until the 2010 low around $1044.
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