Analysis of Gold for February 12, 2019

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Gold has been trading sideways at the price of $1.311.00. According to the H1 time frame, I found that Gold did a successful breakout of the bearish flag pattern (ABC correction) which is a sign that selling continues. I also found confirmed the Head and Shoulders pattern in the background which is another sign of weakness. Most recently, there is a rejection from the supply trendline and median Pitchfork trendline, which are sign of the weakness. Key short-term support is set at the price of $1.302.00. The key short-term resistance is set at $1.315.00.

Trading recommendation: We are short on Gold from $1,305.00 and with the targets at $1,286.25-$1,277.80. Protective stop loss order is placed at $1.318.00

The material has been provided by InstaForex Company - www.instaforex.com