GOLD has been moving downwards since May 18 hitting new
lower lows. It is clearly a continuation of a larger trend down that might form
a double bottom near a low of $1,142 hit back on March 17.
While moving down, gold broke the ascending channel. The
Fibonacci applied to the channel breakout point clearly shows that R2 (1185.55)
and R1 (1174.61) resistance levels were rejected and currently the price rejecting
the downtrend trendline.
There are no signs of a correctional move, and neither of reversal. Consider selling the yellow metal today while it is trading above
S1 (1160.98). There is a possibility that the price will attempt to break above the
downtrend trendline. But, I expect this to be just a spike up. I would stay safe with stop loss just above R1. The target is near 0% Fibs
that is an area around 1138.90.
Support: 1160.98, 1138.90
Resistance: 1174.61, 1185.55, 1196.69
The material has been provided by InstaForex Company – www.instaforex.com