Gold on verge of breaking down ?

Gold 4-hour chart

Gold looks like a  bear flag pattern on the 4-hour chart. After reaching 0.618  Fibonacci retracement , price retreats and tests support  trend line .  
Both  MACD and  RSI indicators are having  bearish divergence, which tells uptrend momentum was weakening as price was moving up.  

Now price is on verge of breaking down the  support zone of the under channel line at 1307-1310.  If price breaks down, stop loss orders might triggers and push price much lower to 1300 and under. Otherwise if support holds and price moves up, it could indicate false breakdown and uptrend might resume. 


Leave a Reply

Your email address will not be published. Required fields are marked *