FxWirePro: Gold surpasses major supports to hit 9-1/2 months’ lows – Snap rallies for short near month futures and tunnel spreads on intensified bearish momentum

Gold’s intermediate trend has been bearish after rejecting highs of 1384.88 levels.

More slumps likely as bears manage to break major support at 1215, 1208 & 1200 marks, prices consistently slide below DMAs to bring in more slumps.

Prior, Shooting star pattern occurred at 1277.75 that evidences dips.

In a broader perspective, more slumps likely as bears break major support at 1215, 1208 & 1200 marks, slide below EMAs to bring in more slumps.

RSI and stochastic on both daily and monthly curves evidence the consistent downward convergence to indicate bearish momentum.

Please be noted that the price of precious yellow metal has always been US rates sensitive commodity. And Fed is most likely to hike in this December meeting.

The gold price is down over 15.73% from the recent highs of 1384.88 levels in just Iast 5-months, and most likely to retest $1,050 after losing strong support at $1,200-$1,210 levels.

While MACD on daily term evidences the bearish crossover that is likely to drag prices down further.

Hence, we see opportunities of shorts in futures contracts or targets of 1125, 1090 and even upto 1055 levels with a strict stop loss of 1213 and 1273 levels.

Alternatively, tunnel spreads are also encouraged for the targets of 40-50 pips.