Gold is breaking the channel support for a downside reversal
Gold price action breakout below the channel support 1910 is indicating a deeper correction lower. A medium-term uptrend channel with well-defined breakout levels has been broken to the downside. This breakout could lead to a test of the deeper correction reversal 1790 level test. A break and a follow-through below 1790 are required for the continuation lower to 1500.
On an intraday 6 hours chart, we can see that the instrument is in the consolidation for the downside extension, within the first half of the downside Andrew’s Pitchfork channel. Look for the short trade entries with the stop loss above 1900. Our trading system is indicating a potential of 80-150$ of profit. The short trade entries invalidation to come only on a clear daily close above 1900 and would trigger stops and a reversal of trade from short to long trade entry.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
