Gold has been trading upwards for the most part of the day and it reached our targets from yesterday. Anyway, there was strong rejection of the $1.354 in the background, which is sign that aggressive sellers did enter on the market.
White lines – Broken upward channel
Yellow rectangle- support 1 ($1.329)
Blue rectangle – support 2 ($1.320)
Gold did drop sharply and did test the level of $1.338. This aggressive response from sellers is big warning for upward price and buyers since there is potential for more downside. We found broken upward channel in the background and selling on the rally. Resistance levels are seen at $1.354 and $1.357. Downward references are set at $1.329 and $1.320. Watch for selling opportunities.
