June 21 , 2018
By looking at the daily chart we can see that from 15th may 2018 to 14th June 2018 gold was trading into a strict range of $1282 to $1305 level but on last Friday bears initiated and it slipped to $1280 level but that was just a starting because earlier gold was providing us so many choppy sessions. Then in the current week bears got the same momentum and it took the yellow metal to further downside.
The valid breakout of the consolidation phase is suggesting us that it may fall further and it’s just a starting. The way blood bath is going on and seems like bears are beating the bulls like black n blue. Bears may test the $1250 level in short term.
By applying the Elliot wave theory we can see that impulsive has completed and presently pair is travelling in the corrective wave of (a) which indicates that time has gone for long in the yellow metal and it’s time to sell on every rise and take profit at every dip.
The short term to intermediate term trend is down so in a downtrend market always sell on rise would be profitable opportunity. Well Odds are in favor of bears and intraday bias remains bearish on pair as long as $1300 level remains intact.
A bearish crossover on MACD indicator is favoring the bears and providing bearish signal for the time being and RSI is also providing bearish signal from below 50 territory. The $1300 level is immediate resistance level followed by 1320 whereas 1250 level is strong key support level followed by 1240 level.