Let's notice that today's weakness in the SPDR Gold Shares (GLD) has pressed the price structure right to a test of its 11-month support line, now at 160.90, which so far has contained the selling pressure.

That said, daily RSI remains pointed straight down, but unlike yesterday now is accompanied by a breakdown in EUR/USD, too. Both of these increase the likelihood of a break of the 11-month support line on the way to a test of the rising 200 DMA in the vicinity of 158-157.

 


Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.