Last Monday (09.09) I analysed GOLD and the bearish engulfing pattern on weekly chart.

GOLD price
GOLD Weekly – price broke down the bearish engulfing pattern

The layout of weekly candles suggested drops that occurred at the end of the week and the price had already fallen by 15$/oz.

GOLD price
GOLD Daily – price is on the bullish trend line – breaking it will be a signal for further declines

When we analyse the Daily chart we can see that the price is currently on the upward trend line, and since the last two daily candles (the long top shade) have clearly rejected the price above 1502 $/oz, overcoming this line will be a signal to continue falling, supported by ongoing bearish divergence. Sellers can target level of 1440.


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