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


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