- Gold Trading below its 50 day moving average.
- Closing below the cloud may extend this correction.
- This looks like a normal correction that happens in a bull market unless key levels are taken out.
- If price come back and close above 50 DMA we may see the up trend in action.
- Staying below 1360 levels will attract selling.
January 5, 2011
- ES Four hour chart with 50 period moving average.
- Price took support at the 50 period moving average today. This moving average in four hour chart has given good support till now.
- Staying above 1258-1259 level will favour bulls.
- For bears price should stay below 1258 and the 50 period moving average for creating downward momentum.