Gold closed down again and in doing so closed below the Bollinger band. The next support level corresponds to the recent swing low at 1486. The Fibonacci 38.2% level should provide strong natural support at 1486. RSI is working its way down to over-sold territory, but still has room to the downside. MACD is getting close to bearish cross of the neutral line. Stochastic is just crossing into over-sold territory and the next question will be if it embeds or not. An embed below 20 for 3 days indicates a market changing character to accelerating downside momentum.
GLD bounced from the lows at minor support around 145. Stronger support lies at 143.42 where chart support is being bolstered by the 100 day moving average. Price has been outside of the Bollinger band for 3 days and rarely will do this more than 5 days. A short term rally is likely to bring price back within the bands.
That 143 support level is also the Fibonacci 38.2% retrace level, a strong natural support zone.
The weekly chart shows price dead center in the trend channel. The 50 level stands out as support on the RSI study. With a current reading of 57, the 143 support level looks doable and would put price at the lower boundary of the channel.
PHYS, real and 100% allocated gold bullion fund, fell to support at 13.0. In doing so, it also fell outside of the Bollinger band. The 100 day moving average is supporting just below at 12.89.
This 13.0 level is also a strong natural support level as it falls at the Fibonacci 38.2% retrace level. We are now at the longer term trend line and a break here will put price into a broad congestion zone between 12.38 and 13.0. A logical target for support in this range will be the next Fibonacci level at 12.68.