FX.co ★ Gold Major Breakdown May Be Under Way

Technical Outlook and Chart Setups:
As depicted above, gold seems to be in a larger consolidation structure since last quarter 2011, the dropping line of resistance. Taking into account the inside wave structure, the yellow metal seems to be in a wave 4 consolidation between 1540.00 and 1630.00. Anything above 1630.00 will break out of the consolidation structure; but for now we expect a breakdown of 1530.00 levels in near term.

Trade Recommendations:
Sell intraday rallies 1580.00/1600.00 levels, Stop at 1630.00, Target Open.

Good Luck !