The last 72 hours in the markets have been truly incredible. Global equities have roared back after Monday’s crash and cryptocurrencies are showing signs of life. Led by gold and crude oil, commodities have experienced heavy participation. Buckle up, we are in for an active three sessions ahead of Friday’s close.

Gold is continuing the bearish action that defined Tuesday’s session. Price has traded to a key area of downside support where momentum has stalled. A look at the daily technicals will help us gain some insight into where this market may be headed.

Gold Technicals

I have said it before, but trading is a game of inches. Tuesday’s trading plan outlined a long position from a key support level in April gold futures. Price came within one tick of entry before posting a 50+ tick reversal.

As of this writing, the intraday low is 1322.1. This is a key level and is likely to be tested again in short order. Here are the other levels to watch for the remainder of the session:

• Resistance(1): Bollinger MP, 1333.6
• Resistance(2): 20 Day EMA. 1335.3
• Support(1): Macro 38% retracement, 1321.7
• Support(2): Psyche level, 1320.0

Overview: The macro 38% retracement (1321.7) is the primary technical level in this market. In the event that trade is sustained beneath it, the recent bearish sentiment may turn into a trend.

For the moment, the traditional inverse relationship between gold and the U.S. indices has reappeared. Both the DJIA and S&P 500 have posted early gains on the trading day. Gold has subsequently shown weakness. This correlation will be a key element in the overall market dynamic as we move forward.