Gold – Further downside appears likely
Weekly: A sequence of weekly lower lows and highs has been posted. Trading within a Bearish Channel formation. The continuation lower in prices through support has been impressive with strong momentum and shows no signs of slowing. A break of 1217 is needed to confirm follow through negative momentum
Daily: Previous support level of 1236 broken. We look for a re-test of the downward trending resistance. The bearish engulfing candle on the daily chart is negative for sentiment. Our bias remains bearish and further downside is expected to target support at 1175
4Hour: The sequence for trading is lower lows and highs. Bespoke support is located at 1217. Price action has continued to range within a triangle formation. A break of 1217 is needed to confirm follow through negative momentum. We have a 78.6% Fibonacci pullback level of 1174 from 1365 to 1122
Action: We look to sell a break of 1217
Stop: 1230
Targets: 1175
UPDATE: The move lower has triggered our short trade on Gold at 14:06 on the 31/07/2018
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