FX.co ★ Gold Breaks Immediate Trendline Support, We Favour Further Downside

Technical Outlook and Chart Setups:

At last, the yellow metal got into the short-term line of support as expected and depicted above. Furthermore, it hits the first measured target below 1750 level at 1739. This completes the first downswing or wave, consisting of lower lows and lower highs from 1787 level. We expect to see another downswing being carved out towards 1720/00 levels by the metal soon. 1775 level is resistance now, where we stood yesterday, just at the tip of trend line. In other words, till the time prices are below 1775 level, expect lower lows and lower highs to be carved out. Furthermore, the recent upswing seems to be stalling out right at past support turned to resistance around 1750/60 levels; this should be used as another opportunity to go short.

Trading Recommendations:

Stay short , stop at 1790 (we shall move it down soon), target 1720/00 at least.

Good Luck!