FX.co ★ Analysis of Gold for May 18,.2021 - Sideways correction and potential for the downside breakout towards $1.845

Technical analysis:

Gold has been trading sideways at the price of $1.872. There is potential for the bigger drop but the price would need to break the key support at $1.865 to confirm downside direction.

Trading recommendation:

Watch for potential selling opportunities in case of the downside breakout of support at $1.865 with the downside targets at $1.856 and $1.845.

Stochastic is showing overbought condition and fresh bear cross, which is another sign and confirmation for the downside rotation.

Key resistance is set at $1.874