Gold Formed a Double Bottom

Gold has been gradually moving to the downside since the beginning of April this year, ever since it formed a shooting star candlestick on at $1,365 on the daily time-frame and bounced off from that level. Last week the precious metal found some support at $1,235 and appears to have formed a double bottom at that level. The question now is whether it will breakout below that support or the double bottom is a signal for a new move to the upside as it may be time for some retracement.

If Gold breaks out below $1,235 it may continue falling towards $1,200. On the other hand, if it bounces off from the aforementioned support level it could retrace back towards $1,265, which is the last high.