Gold has been trading sideways in past 20 hours. Gold price made new low yesterday at $1.266.50 and we still expect more downside. As long as the key short-term resistance at the price of $1.281.00 we are bearish.
According to the H4 time-frame, we found more acceptance below the key support cluster (purple rectangle) at the price of $1.280.00, which is sign that sellers are in big control on the Gold. The 4-month long complex head and shoulders is dominating the background that sellers are very active on the Gold. There is no any serious indication of potential reversal and the price action suggests more downside. Gold price made series of the lower lows and lower highs and it is trading inside of the downward channel, which is clear indication of the downtrend.
Our recommendation: We are bearish from $1.275.00 but we will add after every decent upward correction structure more selling position. Our advice is to watch for selling positions only. The downward targets are set at $1.211.30 and $1.196.50.
The material has been provided by InstaForex Company - www.instaforex.com
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