A couple days ago we noted the sideways trading range Gold was in between $1,720 and $1,740. We warned that a break below the lower trading range boundary will be combined with a rejection from the trend line resistance and would lead to a move towards $1,700 and most probably below it.
Blue lines - trading range
Gold price is testing the early March lows. Short-term trend remains bearish. Price got rejected at $1,740-50 and by breaking the trading range downwards has provided us with a bearish signal. So far price is moving according to plan by making new lows relative to the last couple of sessions. As long as price is below $1,720-30 area we continue to be bearish looking for a move towards $1,650.
