On the chart –
Gold moved in a range showing indications of bear market consolidation as it was unable to breach highs or lows of previous week. The pattern breakdown was again retested and yet again confirmed solidifying the . We have 2 scenarios –
1. Bulls continue to remain unwanted as the breakdown continues excepting scalp trading.
2. Gold closed below the support, till this is held it can move towards $1273. Once this is breached it can slide to $1260. If this fails to hold it can fall to $1248.
bets remain unattractive as breakdown continues, they only come in contention once a breakout on upside happens.
view – Bears resumed the attack after a week as they pushed the price back towards the low but failed to register a new one. The bets saw a massive surge once the high of the previous week was respected and the price reversed. For bears, the technicals remain in their favor as the breakdown continues allowing room for further downside with the next crucial being $1236-$1240.
On larger terms, Gold remains and prices are expected to head lower.
Possible trades are on both sides, gold can be bought once it breaks out of the flag or at the bottom of the flag/channel.
Gold can be sold under $1278 for the targets of $1273 and $1260 with a stop loss placed above $1289. Longer term target $1248.
A sell-on-rallies can be useful under current scenario.