Technical analysis:
Gold has been trading downwards as I expected. The Gold completed upside ABC correction and there is good potential for further drop towards $1.860.
Trading recommendation:
Watch for potential selling on the rallies with the downside targets at the price of $1.860 and $1.842.
The main cause for the downside movement is the breakout of the upside channel in the background and successful re-test phase.
Stochastic is showing extreme reading but with no evidence of the reversal.
Key resistance is set at $1.902
