Analysis of Gold for February 06, 2019

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Sellers are in control in the Gold market. We found a confirmed head and shoulders pattern in the background, which is another strong sign of weakness. After the breakout of the HSS pattern, the price went into the bullish corrective phase, but in my opinion that upward correction is about to finish. There is a breakout of the upward trendline together with the breakout of the 20h rectangular pattern, which is another sign of weakness. Short – term resistance is set at the price of $1.316.00 while the short-term support is set at the price of $1.308.00.

R1: $1.321.85

R2: $1.324.50

R3: $1.328.00

Pivot: $1.318.30

S1: $1.315.65

S2: $1.312.35

S3: $1.309.45

Trading recommendation: We are still short on Gold from $1.311.00 and protective stop at $1.322.00. The first objective target is set at the price of $1.297.75

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