(Adds chart)

July 21 (Reuters) - Gold flagged a major bearish reversal signal in March and breached a key support level in June. Two further potential tipping points are now emerging on the monthly chart.

March's warning came via a bearish engulfing candle — a two-bar reversal pattern in which a decisive down-month completely swallows the prior month's gain, open to close. The scale of the reversal, erasing the entirety of the preceding advance, marked a significant shift in sentiment after gold's extended rally.

Confirmation followed in June, when gold closed below its 10-month moving average, exposing a low of $3,942 — a near-30% correction from January's $5,594 record high.

Gold has attempted to claw back some ground in July, but the recovery now sits just above two levels that remain critical to the broader downside picture: the 20-month moving average at $3,821 and the 50% Fibonacci retracement at $3,702. Should these give way on a fresh leg lower, the 61.8% "golden ratio" retracement at $3,255 would come into play.

A more constructive longer-term outlook would require gold to reclaim the 10-month moving average, now at $4,453 — the same level whose breach in June first signalled trouble.
Gold monthly chart:


(Peter Stoneham is a Reuters market analyst. The views expressed are his own)