Buying climax in the background on Gold evolved into larger weakness as I expected. The price tested the level of $1.310.00. We found a confirmed head and shoulders pattern, which is another strong sign of weakness. The key short-term resistance remains at $1.323.00. As long as this resistance is holding, you should watch for selling opportunities. The short-term support is set at the price of $1.308.00 and the breakout of the support would confirm a potential test of $1.297.75.
R1: $1.323.00
R2: $1.324.55
R3: $1.325.60
Pivot: $1.322.80
S1: $1.320.75
S2: $1.319.80
S3: $1.318.35
Trading recommendation: We are short on Gold from $1.311.00 and protective stop at $1.322.00. First objective target is set at the price of $1.297.75.
