• Gold reversed from resistance zone
• Further losses likely toward 1500.00
Gold recently reversed down from the resistance zone lying between the key resistance level 1555.00 (which stopped the previous sharp impulse wave 3 at the end of August) and the upper daily Bollinger Band. The downward reversal from this resistance area led to the formation of the weekly Japanese candlesticks reversal pattern Evening Star – which marked the start of the active short-term impulse wave (c). With the clear bearish divergence seen on the daily Stochastic indicator, Gold is likely to remain under bearish pressure and continue to decline toward the next round support level 1500.00 (target for the completion of the active ABC correction 4).