A False Breakout in Gold?

For me, the precious metals have been very complicated for a number of reasons, but we are looking at DZZ-an inverse ETF or short on Gold and it's break down today, is it real or not?

 First of all there's a very well seen line of support in DZZ, that becomes a very obvious place to put stops for technical traders, it also becomes an obvious target for black box trading and HFT firms so the breakdown is in line with a false break because of the support issue alone.

Looking at the 5 min 3C we see some positive action. I'd like to see this followed up of course by a move above resistance (former support) and our answer will be more definitive, right now I'd say there is a GOOD chance this is a head fake move. Any positions taken now in light of that should be probing, confirmation is when we want to get more serious about the position size.

Watch for a price move above $7.88.