Gold Found Some Support

Gold has been depreciating sharply ever since it broke out below $1,280 and the trend remains quite bearish, but the precious metal did find some support at $1,211. What is more, it also formed a spinning top candlestick above that support on the four-hour time-frame and bounced off from it. Gold has also formed another spinning top candlestick as well as a hammer candlestick on the daily time-frame above the same level, indicating a likely retracement to the upside before it continues falling. Next target is probably around $1,235, and if it breaks out above that level it could continue moving to the upside towards $1,242, which is the (MA)89 indicator on the four-hour time-frame.

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.

Gold Is Retracing

Gold has been moving to the downside for the past three months but ever since it broke out below the support at $1,285 that movement accelerated considerably. That said, the precious metal found some support at $1,237 and bounced off from it after forming a spinning top candlestick on the four-hour time-frame. It is currently testing the resistance at $1,256 and if it breaks out above that level the current retracement will likely continue, its next target being likely at $1,265, which coincides with the (MA)89 indicator on the four-hour time-frame. A breakout above that level could, in turn, lead to a rally towards $1,285 again.