Gold has been trading downwards as we expected. The price tested the level of $1.269. Anyway, we are expecting potential rally since there is momentum lost on the last leg down.
According to the H4 time-frame, we found that there is the buy divergence on the Stochastic oscillator, which is sign that potential rally is about to happen. Also, Gold is trading near the key support at $1.266. There is the test-reject of the Keltner channel lower band at $1.270, which is another confirmation that rally might come. Upward targets are set at the price of $1.279 and $1.288.
Upward references:
20EMA (blue average line) - $1.279
Top of the Keltner channel - $1.288
Downward reference:
Key swing low - $1.266
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