Chart of the day: Gold’s 'throw-over' may have further downside

Blake Morrow Forex Analytix

The long-term technical development is a "throw over" of the long-term ascending channel (red). This is a similar signal as a false upside breakout, which is a bearish development.

Today, gold is at minor support and a break of the 2950 level would target the lower channel (red) on a break lower. A more near term support level is the 50dma (orange) and a break of this may kickstart the move lower.

Author

Blake Morrow

Forex Analytix

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.

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