Gold – Chart
On the 2H Chart, Gold Spot is at $4,275. The lower price of the Blue channel at $4,306 has been tested on bearish continuation candles after several attempts at the 50 moving average around $4,320 has failed. The series of lower highs in the aftermath of $4,364 suggests the distribution is now at the hand of the sellers. A test of the lower support could be breached that would take Spot Gold to the 0.1-0.5 Fib at $4,240 to $4,200.
The RSI has fallen to below 48 implying a lower momentum. The sellers are re-taking control of the failed fair value zone at $4,280 to $4,320 from the Volume Profile. The descending trend line is the barrier for the upside in the current market.
Overall the 2H Chart is a bearish trend structure, on a lower timeframe, at $4,320, within the descending channel which started out at the $4,575. The lower highs and lower lows continue to favor the sellers.
Trade Idea: Sell at $4,275, targeting $4,240, with a stop-loss at $4,306.