CHART OF THE DAY: Gold Just Broke Through A Technical Level It Hasn't Seen Since 2001
You'll hear adherents of technical analysis talk a lot about the 200-day moving average.
When the price of a financial asset – like gold, for example – falls below its average price over the last 200 days, it indicates increasingly bearish sentiment toward the asset.
The gold price actually dropped below its 200-day moving average back in early February, when it was trading around $1667 an ounce.
Today, as Stifel Nicolaus strategist Dave Lutz points out, gold has also broken below its 200-week moving average, which currently hovers around $1435. The price of gold hasn't been below its 200-week moving average since 2001.
It's not necessarily a critical level that a lot of traders are watching, but it does illustrate just how bearish sentiment toward the shiny yellow metal has become in recent days.
