GOLD market has been moving north for a long time. Due to this growth its price reached and even surpassed the level of 1300 USD, which resulted that last Friday GOLD was most expensive since the beginning of the year. In the area around this level a strong supply reaction quickly occurred, and as a result of lasting to the end of Friday’s session declines a bearish pin-bar candle was drawn rejecting this significant resistance. It turns out that level of April and June highs once again may stop buyers before further increases.
Looking on M15 chart, we notice that almost from the beginning of Monday session, market moves calmly north. The small dynamics of this movement and significantly smaller than the previous candle bodies indicate that this can only be a correction. Technically, this trend could continue to around 1289.50, where we could expect a supply response. Rejection of this resistance could create the right shoulder of bearish Head & Shoulders formation, and the breaking of the neck line in the area around 1281 USD would open the way for further declines.
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