Spot Gold – Breaks Down From Corrective Move, Forms Pin Bar at Support
After consolidating in a corrective move between 1317 and 1307, the precious metal fell lower forming a large breakout bar. But after this, the PM consolidating for the next 4 hours.
This stalemate ended with a pin bar + false break below that bear flag support. You can see the 1hr pin bar in the first chart, and the false break on the 5 minute intra-day chart further below.
1hr Gold Price Action Chart
5 Minute Intra-Day Chart
We actually traded both short and long today, catching the momentum move down, and a quick false break back up (two trades below).
Trade #1: +700 Pips Short Spot Gold
Trade #2: +275 Pips Reversing/Long Spot Gold
For now, bulls will have to ‘recover‘ the 1307 support line. If it does, then expect a move back up to 1315/1317. If it fails here, look to get short targeting 1303 and potentially a deeper move lower towards 1294.