Gold fell down yesterday and is testing the support level 1272.90 at the moment. Given the presence of the local downtrend and the absence of any significant reaction of the price to the level, we should consider the scenario of its breakout, which will be a strong bearish signal. The breakdown move should be sharp and supported by large volume, which will be a more accurate and sure signal for entering the market. A stop loss should be placed above the breakdown volume bar. A potential of the deal is up to 150 pips.
The bottom line: short positions after a breakdown of the support.
The bottom line: short positions after a breakdown of the support.