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Gold Breaking Down a Short-term Triangle Pattern

As we get into the 7/24 Asian session, gold price is falling sharply. It looks poised to test the 1292.20 low and perhaps has further downside risk.

4H Chart

Looking at the 4H chart, we see that a swing projection would target the 1270-1275 area.

When you look at the daily chart you can see that the swing projection area is also a previous support/resistance pivot area. Since the trend in 2014 is sideways, and forming a triangle, we should limit the bearish outlook to 1270. A push lower could violate the triangle support. In fact expect buyers around the 1260-1270 area.

Daily Chart