Participant

On the 4HR chart gold has been trading close to the bottom side of the Ichimoku cloud over the past 7 candles, this would seem like a good entry point for new shorts as the cloud is a resistance area from which price often moves away again and back towards its trend. Stochastic oscillator has more downside room and is showing downward momentum. Looking at the day chart we can see the past 7 candles have produced lower highs and higher lows creating the formation of triangle, blue area. This is a typical consolidation pattern and I would be seriously surprised if this commodity does not continue its downward trend soon. Confirmation will be given with a close below the triangle . A close above the triangle could signal a correction.

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