Gold has been trading downwards in past few sessions. The price tested the level of $1.270.80. According to the H4 time-frame, we found that there is the breakout of the 4-month long head and shoulders pattern in the background, which is sign that downward price is expected. Also, the rounding top formation is in the background together with the complex head and shoulders, which adds even more power on the downside. The key support at the price of $1.281.00 was broken and there is no significant support until $1.211.00 and $1.196.50.
Our recommendation: We sold Gold from $1.275.70 and we did put targets at $1.211.00 and $1.196.50. Protective stop is placed at $1.312.00.
The material has been provided by InstaForex Company - www.instaforex.com