Gold has been trading lower exactly what I expected yesterday. The price did test and broke low my first downward target at the level of 1,485. I do expect more downside and potential test of 1.460.
Parallel downward slopping lines – Downward channel
Yellow rectangle – Important support level and objective
Purple falling line – Expected path
MACD is showing new momentum down on the recent drop, which is sign that sellers are in control and that buying looks very risky. For selling opportunities, watch for potential bear flag on hourly or 4H-time frame to time your entry better. Next downward target is set at the price of 1.459.
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