Gold has been trading downwards as we expected. The price tested the level of $1.273. We still expecting more downside but we expect rally first.
According to the 30M time-frame, we found that there is the breakout of the downward channel and successful re-test, which is sign of the potential rally. We also found a strong bullish divergence on the MACD oscillator, which is another sign for the potential rally. Our advice is to watch for buying opportunities with the targets at $1.284 and $1.287.
Upward references are set:
Swing high – $1.284
Major high – $1.287
Downward references are set at:
Intraday swing low - $1.274
Swing low - $1.273