Gold: Weekly Trading Forecast 20th – 24th March – Gold Reversal Amid Bearish Butterfly

The gold peaked twice at 1739 and started to fall amid a bearish butterfly formation.

What has happened? 

Gold continued its bullish stance from the previous week as it climbed steadily in the first 2 trading days last week.After peaking at 1747, a strong pullback took place and price started to fall and lower highs were formed while still supported at 1710.On Thursday, the price jumped and broke through the lower highs but was rejected and smashed down at 1739.The bearish wave continued through and broke below a 1-month rising trendline which was formed throughout the formation of a bearish butterfly.

What now?

The multiple breakdowns have strongly suggested a bearish stance in this coming week.The best course of action is to wait for a pullback towards the 1711 – 1720 breakout area.An inside bar breakdown has taken place in the H4 chart as the price broke below support level 1710.

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