Gold has broken a key price flip area on the daily price action chart and is now looking to make a break lower into the next support level if it can gain momentum lower. After Fridays session price closed below the key daily support level. This close below the support level was crucial because it told traders that this old support was now going to look to hold as a new resistance area and traders could now start targeting short trades at this new resistance. You can learn more about how this pattern works here: Price Action Secrets
Once price was under this level it began a retracement higher and this is when traders should have been on higher alert looking for short trades at this new key resistance level. The 1hr chart below shows that price fired off a A+ pin bar at the new resistance area. This pin bar was inline with the down trend and was a textbook pin bar. The nose of the pin bar was sticking out and up and away from all other price like all good pin bars do and it was rejecting the key resistance area. After breaking the low of the pin bar price has now moved lower and into the near term lows.
GOLD Daily Chart
Gold 1Hr Chart
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