Gold has been grinding down slowly the last few weeks, trading on the negative side of the mean value. We’ve had a few bearish signals along the way but the support level at the $1293 area has been restricting price from moving any lower.
Late last week, the support level was breached, and retested as new resistance this week. The hesitation to move back above as gold respected the swing level has created an Inside Day with some nice bearish tone in the body.
If Gold manages to break down past the Inside Day low, we could see a nice downward move develop from this price action setup.