Sales in GOLD remain more likely

GOLD

Time frame: H1, H4

Technical analysis: The 4-hour chart shows that the price managed to break the flag consolidation. Shortly afterwards quickly returned to the resistance of the formation. On July 26, 2019, the precious metal re-tested the already active resistance (the yellow trend line), at which point sellers entered the market sending it to the level 1410. From this level the price entered into short-term consolidation, and on 26.07.19 it did re-test of the broken support (white trend line). Currently, it moves into a new downward trend channel, with the downward movement expected to continue to the support of the channel (the green trend line).

Indicators: In both time frames, RSI and DeM are around 50%, which supports the downward scenario.

On a 4-hour time frame 50 periodic averages play a role of resistance. 100 periodic are in neutral phase. 200 periodic play a role of extremely strong support.

On a 1-hour time frame, all periodic averages play a role of resistance.

Alternative Scenario: If the price can break through the aforementioned resistances, then we can expect a long-term appreciation and continued upward trend.

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