Gold Found Some Resistance at $1,262

Gold has been gradually moving to the upside for the past week or so, and yesterday it rallied sharply before finally finding some resistance at $1,262. The precious metal has formed several candlesticks on the four-hour time-frame that are a signal for a likely move to the downside, namely a hanging man, a doji and then a second hanging man candlestick. Currently Gold is consolidating below the aforementioned resistance at $1,262 and if the signal for a move to the downside proves valid then there will likely be a drop towards the support at $1,242, which coincides with the (MA)89 indicator on the same four-hour time-frame. On the other hand, if the precious metal breaks out above $1,262 despite the signal for a drop, it will likely continue rallying towards $1,300 once again.