The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now reached the 1250.00 area and some profits are likely to be taken from here on down. Should 1240.00 be broken support can be found at 1236.45 followed by 1229.40. Below this area a drop to 1200.00 could be forecasted with 1204.50 on the way as satellite support.
Resistance above the current level comes in at 1265.25 with the descending blue trend line at 1271.50. A break out higher would give long traders a chance to enter or add to their positions provided 1276.95 is cleared. At this point 1300.00 becomes a target with 1289.45 and the 50 DMA at 1293.44 providing resistance. The rising red trend line should reach 1300.00 before price encounters the level and can provide additional interest at that point. The 200 DMA is sitting on 1300.00 and the move under this MA by the 50 DMA provided a death cross for the chart last week. The 100 DMA at 1302.80 is in danger of following suit.
