Gold Price Analysis: Bear flag on 4-hour chart
Gold’s bounce from the April 28 low of $1,690 has taken the shape of a bearish continuation pattern called bear flag, according to the 4-hour chart. At press time, the lower end of the flag is seen at $1,700 and the yellow metal is changing hands at $1,710 per ounce.
A break below $1,700 would confirm the flag breakdown – a resumption of the drop from the April 23 high of $1,739 – and create room for a slide to $1,651 (target as per the measured move method). Alternatively, a move above $1,720 would invalidate the flag pattern.
Gold & Silver spot
Gold longs at the best support for today at 1694/93 were perfect, but shorts at 1704/06 stopped above 1712 so we gave back some profit. The next test overran a little, but only to 1691. Obviously this level is key to direction today so a break lower is a sell signal. Silver is not worth trading when there appear to be better opportunities in Gold. Silver is barely moving.
Today’s Analysis Gold best support for today at 1694/93 but be ready to sell a break below 1690 to target 1679/76 for profit taking on shorts. If we continue lower look for 1672/70, perhaps as far as 1661/59.