Gold has been trading downwards. The price tested the level of $1,304.00. According to the H4 time frame, I found that Gold did a successful breakout of the bearish flag pattern (ABC correction) which is a sign that selling continues. I also found confirmed the Head and Shoulders pattern in the background which is another sign of weakness. Key short-term support is set at the price of $1,297.50.
Trading recommendation: We are short on Gold from $1,305.00 and with the targets at $1,297.50-$1,275.80. Protective stop loss order is placed at $1.318.00.
The material has been provided by InstaForex Company -
www.instaforex.com