Gold price continues to trade sideways at the price of $1.275.00. Potential bearish flag in creation suggests further downward continuation.
Purple rectangle - major resistance trend line
Yellow lines – bearish flag channel
White large lines - major down trending channel
Gold price broke below the important $1,280.00 support area and on that way completed the complex head and shoulders pattern, which is sign of the further weakness on the Gold. Current rally-test is normal after the breakout in order to go further lower. As long as the price is getting accepted below the $1.280.00, we are bearish on the Gold. Watch for potential breakout of the bearish flag to confirm further downward continuation. The downward targets are set at the price of $1.249.50, $1.231.40 and $1.211.30.
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