This morning's flash-crash dump of over $2 billion notional in gold futures broke numerous technical levels, but as the precious metal bounces back off support, the question is will the bounce continue? Citi answers...
Having tested up towards its 50-day moving average (green line), this morning's sudden and heavy volume flash-crash plunged the precious metal below its 100- and 200-day moving average (orange and red respectively below).
But as Citi notes, Gold is presently testing a strong area of support from $1,233-$1,237 where the 200 day and week moving averages converge with the 76.4% retracement of the May-June rally.
Citi concludes... we have confirmed triple weekly momentum divergence on Gold and as a reminder, this is one of our favorite indicators to suggest that a trend (downtrend in this case) is running out of steam.