Gold Is Very Bearish

Gold fell sharply yesterday from $1,242 to $1,218 but that latest move to the downside had begun after the precious metal formed a clear shooting star candlestick at $1,254 on the four-hour time-frame. Gold did find some support at 1,218 and bounced off from that level and is currently retracing back to $1,230, but the overall move the downside is likely not over yet. More importantly, the precious metal will likely soon reach an important support level at $1,214 – that is, if it breaks out below $1,218 first. $1,214 is the last low and it is most obvious on the weekly time-frame. A breakout below that support will likely lead to a further move to the downside towards $1,200 or even below that level.