Analysis of Gold for May 17, 2019

Gold has been trading downwards as we expected. The price tested the level of $1.275. We still expecting more downside.

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According to the 4H time-frame, we found that there is the breakout of the upward trendline (green line), which is sign that sellers are in control. We also found potential completion of the ABC upward correction, which adds even more weakness on the Gold. Our advice is to watch for potential bear flag in order to build more short positions.

Downwards reference is set:

$1.266

Upward references are set:

Swing high – $1.288

Major high – $1.302

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