FX.co ★ Gold analysis for November 20, 2013

Gold prices continue to trade below resistance levels. Short-term resistance is found at 1,279 and at 1,293. Short-term support is found at 1,268 and 1,263. Prices are trading in a downward slope and below trend line resistance. The trend remains downward in all time frames.

We expect prices to break below short-term support and challenge the intermediate term support at 1,250. This price level is also important because of the head -and-shoulders pattern that we have been talking for so long and it remains valid. Breaking below the neckline support will give us a target for the downward move near 1,140-1,100.

The daily chart is deteriorating the bullish potential. Prices are breaking below the upward sloping trend line support and should challenge the black neckline support at 1,250. Unless prices break above 1,293, we should soon see a strong move down to 1,250. We remain short biased with increased probability of breaking the neckline. Stop for bears is the 1,293 price level.