Gold has been trading exactly like I expected on Friday. Our Friday's downward target has been met in at $1.420. Since there is strong downward movement in the background and fake breakout of the 20-day high $1.440, I still see potential for more downside.
Trading recommendation:
Red rectangle – Resistance ($1.433)
Yellow rectangle- Support 1 ($1.415)
Yellow rectangle – Support 2 ($1.401)
Bearish flag pattern on the 1H time-frame is in creation and there is possibility for new downward leg on the Gold. My advice is to watch for potential selling opportunities on the down break. Downward targets are set at the price of $1.415 and at $1.401.As long as the Gold s trading below the $1.442, I would look for selling opportuntiies.
