Gold Technical Analysis: Downside favored on bearish outside reversal and bear flag

Gold created a bearish outside reversal (engulfing) candle yesterday, as the bull failure to capitalize on the break above the key resistance at $1,315 was followed by a drop to $1,305. 

Validating that bearish candlestick pattern is the bear flag breakdown on the 15-minute chart, which could yield a drop to $1,294 - target as per the measured move method, that is, the length of the preceding bearish move subtracted from the breakdown price. 

Daily chart

Hourly chart

Trend: bearish

    1. R3 1327.28
    2. R2 1322.74
    3. R1 1314.28
  1. PP 1309.74
    1. S1 1301.28
    2. S2 1296.74
    3. S3 1288.28

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

EUR/USD nears daily lows as risk turns off

Global economic slowdown, Brexit stalemate, and dovish central banks are taking their toll on the financial world, with equities giving up, and the dollar taking advantage of it.

EUR/USD News

GBP/USD slips from the highs amid concerns about Brexit, global economy

GBP/USD trades in the mid 1.3000s, off the highs.,The clock is ticking towards Brexit and worries about the global economy also weigh. US data came out below expectations. 

GBP/USD News