Looking at the three charts of the Gold monthly, weekly and daily, it seems that the instrument has some unfinished business on the downside.
We have identified the upside Pitchfork channel long term and the Gold bouncing from the lower channel line for the second line, as it can be seen on the monthly chart, 1050 level. But the instrument has fallen below the 100 SMA (Red line) and it seems to be on the way to test 200 SMA (Blue line) 998 level as long it is below 1344 level (100 SMA).
On the weekly chart, the instrument has formed the downside Pitchfork channel and it is below 200 SMA (Blue line) 1257 level. The recent uptrend from January has been broken and it is in the process of retesting. The strong downside support zone is 1230-1257.
On the daily chart, the trading plan is revealed. From the long-term perspective, this is a clear downtrend as long as 1267 level holds and you should be looking for short entries in the mentioned selling zone with SL above 1270 targeting 1047 in the medium term.
Happy trading! (click on the chart to enlarge it)
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