Gold has been in a short term downtrend since making a recent top at 1346. A lower high and a lower low appeared in the daily chart .
Resistance Level #1 together with 50 day-moving average and a psychological level at 1300 represent a strong resistance zone for gold to bounce further.
A breakdown candle is spotted at 1300 level. Gold seems to try to retest that breakdown level before going south again.
As long as gold stays below Resistance Level #1 at 1300-1305, we remain short.
A re-test of Support Level #1 is possible, which we look to lock in some profit.
A breakdown of Support Level #1 can lead price down to Support Level #2.
Meanwhile, a breakout of Resistance Level #1 can lead to a test of Resistance Level #2.
Trade Recommendation:
Short at 1298-1302
Stop loss at 1307
Take profit at 1280
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