Gold looking under pressure again now as the close was below 1604 trendline. As long as we stay below this resistance the market will trade lower and once more hit 1595.
Here we see some support and it did hold yesterday..But we are seeing the daily charts begin to turn bearish, and so are the 60 min charts. So only the 240 min shows any sign of being oversold. 1595 to 1591 is the key support..If we fail to hold this and break through 1589 we are going to see further weakness invoked with 1586/1583 then targeted.
Here we would look to cover shorts...Attempt longs, keeping a tight stop below 1581. A loss of 1581 sees 1576/74. Now if we do climb back above and hold above 1604 there is scope for a recovery and we see 1608 to 1611 targeted. Cover longs..However if above 1604 then we can buy dips looking for 1617 eventually, with possible 1622/25 if gains are maintained above 1604.