Source: Forex Analysis
Gold has been trading sideways at the price of $1.329.60. According to the Daily time-frame, we found that there is the bearish divergence on the Stochastic oscillator, which is a sign that Gold may trade lower in the next period. Gold did a successful test of the Keltner upper band at $1.346.00, which is another sign of weakness. Most recently, we got 3 -day balance and the key support at $1.321.00. Watch for a potential breakout of the support to confirm lower price.
Trading recommendation: We plan to sell Gold on the potential break of the support ($1.321.00) and with target at $1.302.15.
The material has been provided by InstaForex Company – www.instaforex.com