GOLD declined off a double top (114.50/115.00 highs) to reach 92.50 before consolidating. It is potentially forming a bearish pennant pattern. A break below 94.85 near the lower bounds of the pennant pattern would confirm the pattern and initiate the next legdown towards 92.50 (Support 1). Clearance there would allow bears to seek 89.43 (Support 1) ahead of 82.66 (Support 1).
However, recycled strength above 102.39 (Resistance 1) would negate the pattern and reopen 106.19 (Resistance 1) which shields 115.00 (Resistance 1).
Trading Indication:
Short-term (Intraday): Sell at 100.40 or higher;
Target at 89.43 and lower;
Stop Loss at 102.40 (2.0%)
Long-term: Possibly buy lower
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