Technical analysis:
Gold has been trading downside as I expected. There is the absorption of the buying climax in the background and potential for the drop towards $1,786.
Trading recommendation:
Watch for selling opportunities on the rallies due to the absorption of the buying climax and the breakout of the rising channel.
Downside target is set at the price of $1,786
Stochastic oscillator is showing bearish divergence and overbought condition, which is sign that downside movement is very possible....
Key resistance is set at $1,831
