Gold has been trading downwards. The price tested the level of $1.312.00 We expect downside movement.
Gold did breakout of the 5-day upward trendline, which acted like support for days. This is a sign that buyers lost the interest in the Gold and that sellers started the distribution process. We do expect potential test of the short-term support at $1.303.15 and then potently the testing of $1.298.90 and $1.293.00. Key short-term resistance is set at the price of $1.323.70.
Trading recommendation: We exited long position and started to sell Gold from $1.314.20 with targets at $1.303.15, $1.298.90 and $1.293.00. Protective stop is placed at $1.324.00.The material has been provided by InstaForex Company - www.instaforex.com