Gold Technical Analysis: Set-up remains in favor of bearish traders; sustained break through $1270 support awaited
|• The precious metal extended its sideways consolidative price action for the fourth consecutive session on Tuesday, forming a rectangle on hourly charts.
• A rectangle is a continuation pattern that forms as a trading range during a pause in the trend but sometimes also marks significant trend bottoms/tops.
• However, given that the overnight attempted bounce was sold into near 100-hour EMA, the formation might still be categorized as a bearish continuation.
• Moreover, technical indicators on hourly/daily charts remained well within the bearish territory and further add credence to the negative outlook.
• A decisive break through the rectangle support, coinciding with 50% Fibo. level of the $1196-$1347 up-move will reinforce the bearish bias and open room for further downside.
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