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Gold Stabilizing Around 1300 after a Sharp Slide; Bearish Outlook

Gold prices plunged during the 4/15 - 4/16 session. The 4H chart shows a break below last week's rising channel support. In one session, gold gave away an entire week's gains. 


(gold 4h chart, 4/16)

As we got into the 4/16 European session, and now the US session, gold is stabilizing around the 1300 handle. The stochastic was oversold but that is resolved.

Bearish outlook:
The 4H chart looks bearish as gold retreated from the 200-4H simple moving average.There was a bullish reaction as price neared the 1277 low set in late March, so the bearish outlook appears to be stalled.
But if gold price fails to return above a pivot area around 1315-1320, then the downside risk remains toward the 1277 low. A break below 1275 should open up 1235-1240, previous support area.