Technical outlook:
A 4H chart view has been presented for gold to have a medium-term outlook. The yellow metal seems to carve out a meaningful top at $1358 levels last Friday. Intraday chart patterns confirm a bearish reversal with prices set to form a series of lower lows and lower highs. Please note that the immediate trend line support has been broken with possibilities of yet another drop towards $1320 levels before a meaningful pullback could take place. In either case, short positions can be built with a stop above $1358 levels. Immediate price resistance is seen at $1358, while support is seen through $1320, $1300 and $1270 levels respectively. Bears should be now targeting the medium term trend line, passing around $1290 levels, and a break lower would expose the $1230 zone at least. Only a clear sustained break above $1358 levels could reverse the trend which looks like a remote possibility for now.
Trading plan:
Initiate short positions now around $1340/45, stop above $1358, target is open.
Good luck!
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