Gold returned under the resistance of the "Flag" formation

22.07.2019 / 11:08

Rating:

GOLD

Time frame: H4

Technical Analysis: Shortly after publishing "GOLD broke a major resistance" analysis, the gold price managed to break back the resistance of the flag consolidation, confirming that there was still no strong breakthrough. In the previous analysis, we mentioned that if the price falls again below the resistance, sale opportunities could be considered. If the price reaches the strong resistance (the red trend line) at price of $ 1434 and makes a price action formation that signals a continuation of downward movement, then we can enter in "sell" position.

Indicators: At this point, all moving averages play a role of support

RSI and DeM are coming out of their over-bought values, which supports the possibility of a short-term price decline.

Alternative Scenario: If the price can break the flag resistance and hold above it, then the upward movement will continue to meet the flag target around the $ 1490 level.

Trader Milko Zashev

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Gold returned under the resistance of the "Flag" formation

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