- Gold confirms a near-term bearish break below a symmetrical triangle support.
- Subsequent fall below 50-day SMA should pave the way for additional weakness.
- The commodity now seems vulnerable to slide back to August monthly swing lows.
- Fresh bearish positions should be accompanied by stop-loss near the $1945 area.
Gold dropped to near two-week lows on Tuesday, confirming a symmetrical triangle breakdown on short-term charts. A subsequent fall below 50-day SMA, around the $1908 region, will set the stage for the resumption of the recent sharp corrective slide from record highs touched on August 7.
Bearish technical indicators on 4-hourly/daily charts add credence to the negative outlook. The commodity now seems vulnerable to weaken further below the $1900 mark and accelerate the fall back towards testing August monthly swing lows, near the $1863-62 region.
On the flip side, any attempted recovery might now confront fresh supply near the $1930 region. This, in turn, should cap the upside near the $1943-45 area, which should now act as a stop-loss level for bearish traders.