Technical analysis:
Gold has been trading downside as I expected and the price has reached the first downside objective at the price of $1.830. Anyway, I see potential for further downside movement due to the strong downside momentum.
Trading recommendation:
Due to the strong downside pressure in the background and breakout of the bear flag pattern, I see potential for the further drop towards lower references.
Watch for the potential selling opportunities on the rallies with the next downside objectives at $1.793 and $1.738
Stochastic oscillator is showing downside reading, which is sign that sellers are in control.
Key resistance is set at $1.870
