Source: Forex Analysis
Gold has been trading downwards. After the price reached our first target at $1.311.00, sellers came into the market and the momentum changed from bullish to bearish.
Resistance at the price of $1.311.00 held successfully, which caused to sellers to start selling. We found that bearish divergence on the the Stochastic oscillator H4 time – frame, which is another sign of the weakness. Resistance level is seen at the price of $1.311.00 and support levels at $1.290.00 and $1.280.95.
Trading recommendation: We closed our long position yesterday on Gold at $1.311.00 with a decent profit. Now, we are neutral to bearish but we are awaiting potential bearish flag on the H1 time – frame, to establish sell positions.
The material has been provided by InstaForex Company – www.instaforex.com