Gold price is moving sideways after the sharp decline at $1,800 which was our first target. Gold price has now formed a bearish channel and is also forming a bearish flag pattern. Gold price could continue sliding higher but I believe the upside potential is limited to $1,820-25. I expect Gold to break down lower.
Red lines - bearish flag pattern
Support is at $1,800 and a break below it will validate the bearish flag pattern and will initiate a move towards $1,770-50 area. Trend remains bearish as long as price is below $1,875. Gold price is most probably going to push lower towards $1,770, but bears do not want to see price start making higher highs and higher lows. That is why it would not be a good sign for the bearish scenario if Gold price moves above $1,820-25 area where we also find the upper channel boundary. If price breaks below $1,800 bears should lower their stops to the recent highs. Currently at $1,817.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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