- Gold's 4-hour chart shows a bear flag pattern.
- A breakdown would imply a continuation of the pullback from $1,740.
Gold's bounce from the April 28 low of $1,690 has taken the shape of a bearish continuation pattern called bear flag, according to the 4-hour chart.
At press time, the lower end of the flag is seen at $1,700 and the yellow metal is changing hands at $1,710 per ounce.
A break below $1,700 would confirm the flag breakdown – a resumption of the drop from the April 23 high of $1,739 – and create room for a slide to $1,651 (target as per the measured move method).
Alternatively, a move above $1,720 would invalidate the flag pattern.
4-hour chart
-637238130257075930.png)
Trend: Bearish
Technical levels
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