On the chart –
Gold respected the breakdown by having a closing under the red trendline after it broke through it in the early part of the week. The move tries to confirm the shift in the trend to . On the chart –
1. Bulls continue to remain out of action as they failed to prop-up the prices excepting scalp trading.
2. Gold closed below the support, till this is respected it can move towards $1284. If this is taken out it can fall to $1273. And if this gives way it can slide to $1260.
view – Bulls tried their best to turn the trend back in their favor but failed badly giving a red flag to bets yet again.
view – Bears came out as the winners at the end of the week as they pushed the price back by $20 from the highs making it close below the red trendline again suggesting the breakdown continues. For bears to continue their assault they need to keep the price below the supports and new lows can be expected with next major 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 $1289 for the targets of $1284 and $1273 with a stop loss placed above $1298. Longer term target $1260.
A sell-on-rallies can be useful under current scenario.