FxWirePro: Golds intermediate bull run seems to have exhausted – 1085 rejected again, testing supports 1071 again

Caution is to don't get bull trapped..!

As stated earlier nothing much is happening with this yellow metal and we've been firm carrying our bearish stance.

In addition to our last week's post, we believe the bearish indications are piling with shooting star kind of candle at 1072.35 which was our resistance areas (1071) earlier.

Currently, yesterday's and current price behaviour seems like it is testing 1071 as support and comfort zone.

More importantly, if you plot monthly graphs, you may perhaps get a proper clarity on how the prices hanging around baseline of descending triangle.

Robust volume build ups are observed on every down streak on monthly charts.

We believe, this week's bulls attempt of jump above baseline again (at 1048.23) was not supported by volumes but bears on the contrary could not resist to hold these levels to push back southwards at 1000 (spot) marks slipping towards 78.6% fibo targets in medium term basis.

So far there is neither any panic for bears nor more cheers for sensible bulls.

As per our earlier recommendation, it is advisable to short rallies for targets of 1065.10, upon decisive break below would even expose to 1050 and then 1000 levels on medium term basis with strict stop loss of 1085.50 levels.