GOLD 26.10.2016 H4 chart.
Downtrend and correction.
Probable flag formation, as price in the upper part of the formation.
Candle sticks formation: 3 pin bars at level of resistance.
Possibility for sell with very good risk/reward ratio.
Technical indicators:
Price is testing the break below 200 SMA on weekly chart - negative signal
CCI(50) overbought zone - we can wait a crossing below 100 for confirmation.
SL 1280.00
Alternative scenario: If price goes above the upper shadows of the pin bars this will negate the negative scenario.
Jr. Trader Nikolay Georgiev
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