Gold continues to trade sideways at the price of $1.328.00. The 4-day balance is present.
Gold price got rejected at the upper Keltner band (resistance) and pulled back towards $1.327.00, which is a sign that buying looks risky. The 4-day balance is present with the support at $1.320.70 and resistance at $1.341.00. More weakness is detected because of the active bearish divergence on the Stochastic oscillator. Breaking below the support at $1.320.70 would confirm a further downward movement and potential test of $1.302.15
Trading recommendation: We are neutral about Gold but we are looking for selling opportunities if we see a breakout of support ($1.320.70) with the target at $1.302.15. Protective stop will be placed at $1.334.00.
The material has been provided by InstaForex Company - www.instaforex.com