Gold price as we explained in our last post made a bearish reversal candlestick pattern on Friday implying more downside to come. The start of the week finds Gold price lower. What traders should look out for?
- Blue line - major resistance
- Green line - important support
Gold price got rejected and made a shooting star bearish reversal candlestick pattern on Friday. Resistance at $1,350-60 area remains strong and very important. The inability to break it and close around $1,340 on Friday while the high of the day was near $1,360, was a very bearish sign. We warned bulls that more downside should come.
Price is falling further and we will not be surprised if price falls towards $1,320 or lower. Short-term support is found at $1,320. If broken we should see Gold price move to $1,300. Holding above the green trend line support is very crucial for the medium-term trend. A higher low around $1,300-$1,310 would be something bulls want to see. On the other hand bears want to break below $1,300 and stay below it. In the short-term we remain bearish looking for more downside in Gold prices this week.