Gold Closes Lower & Hits Support at the 21 Day Moving Average

Gold gapped lower on Sunday night and dropped to the 21 day moving average @ 1266. Even though price rebounded off that support area, the precious metal still closed well under the 7 day moving average and now seems like it wants to re-test Monday's low. We also had the first strong red Heikin-Ashi candle since the downturn from the upper Bollinger Band (see chart below). We will want to see more of these strong Heikin-Ashi candles to give us confidence that a strong downward move is in progress and not just a chop zone of sideways price action. The haDelta indicator is confirming the downtrend as well.

Disclaimer: This post is for educational purposes only. Trading is at your own risk.