Gold has tested and rejected from our major parallel resistance at the price of $1.436. In my opinion gold is in big extended run and downward correction is very likely to happen in next period. Watch for selling opportunities.
Blue lines – Pitchfork upward channel
Purple rectangle – Support 1
Red line – Upward most recent trend line
Gold did consolidation for few hours near my upper parallel Pitchfork line (resistance), which is good sign that buyers are exhausted and that drop my come. The level of $1.438 is key resistance for the gold and as long as the Gold is trading below, you should watch for selling opportunities. Stochastic oscillator and RSI showed us bearish divergence, which is another sign that buyers lost momentum. The breakout of the upward tendline (redline) would confirm further downside. Downward target is set at the price of $1.382.
