As mentioned in yesterday's analysis Gold has most probably finished its upward move from 1,291 and is now making a reversal. Prices are expected to fall towards at least the 38% Fibonacci retracement if not towards the 61.8% retracement. We are bearish with the first target 1,346 and second at 1,328.
The prices are heading lower and support is found at 1,320-10 level. If this price level is broken then we could expect the low at 1,291 to be tested. If that low is broken then we should see prices challenge the 1,272 low with increased possibility to break it. The prices have now back tested the broken upward sloping blue trend line. If support at 1,300-1,290 is not broken, then the bulls will most probably have another chance to test 1,400 resistance.
Concluding we are short-term bearish from 1,365-70 with 1,376 stop and target 1,346 and 1,328. The form of the decline from recent high will determine how far we fall and if there is a chance of making a new lower low, than 1,291. We need to give the price more time to unfold and give us more information whether this downward move is corrective or impulsive.
