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Gold showing signs of potential reversal
Gold has been consolidating around the confluence of trendline and 61.4% Fibonacci support, coming off the back of a drop below the notable $1303 level. Looking at recent price action, we are seeing a host of indecision candles with long, lower shadows.
With the wider trend showing higher lows since the beginning of 2016, there is a strong chance this current short-term period of downside was going to turn higher once more, rather than break below $1236. As such, watch for a potential bounce from here, where a break below the $1280 low from yesterday would negate hopes of a bounce from this level.
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