Gold has dropped below its 20-, 50- and 200-period moving averages on the 5-hour chart, trading at $4,343.25 with a completed head-and-shoulders top pattern. Support at $4,313 is now the key level, with a break lower opening the door to $4,260.60 and $4,200, while $4,313–$4,380 remains a choppy no-trade zone.
Gold is trading at $4,343.25 on the 5-hour chart, below its 20-, 50- and 200-period moving averages, a setup that points to sellers in control. The metal's MACD reading has pushed to -30.68 against a signal line of -25.64, confirming downward momentum is accelerating.
Support at $4,313 in focus
The next test sits at $4,313, a level that, if it breaks, could trigger cascading sell stops. That would open the way toward the 61.8% Fibonacci retracement at $4,260.60, and possibly $4,200. The $4,313 to $4,380 range is being treated as a choppy zone, without a clear breakout or breakdown signal.
A completed head-and-shoulders top
Chart watchers also point to a head-and-shoulders top formation that is fully complete, a pattern that typically warns of further downside. Selling volume has been rising on each dip, a sign of conviction behind the move lower.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
