The gold has climbed for the first 3 trading days of last week which it found resistance at a falling trendline.
The resistance has translated into a very bearish movement and broke through the bottom of a rising channel in the H4 chart.
On the last trading day, gold fell into a range and there's one hour where buyers did try to push up the price but failed miserably, leaving a long upper shadow (H1 chart).
The price went on to inch lower and finally closed right at the previous low.
Therefore, we are expecting that the sellers will continue to take control and this time it may finally break through the neckline of the head n shoulder.
Once the break happens, we hope to see that the price, with strong demand at the bottom, will retrace back to the neckline to retest and that's where we want to get ready to sell.
The resistance has translated into a very bearish movement and broke through the bottom of a rising channel in the H4 chart.
On the last trading day, gold fell into a range and there's one hour where buyers did try to push up the price but failed miserably, leaving a long upper shadow (H1 chart).
The price went on to inch lower and finally closed right at the previous low.
Therefore, we are expecting that the sellers will continue to take control and this time it may finally break through the neckline of the head n shoulder.
Once the break happens, we hope to see that the price, with strong demand at the bottom, will retrace back to the neckline to retest and that's where we want to get ready to sell.
