Gold break below significant upward trendline, pose for more downward movement to 1200 per ounce

The precious metal which had enjoyed a strong upside rally from the beginning of the year 2017 currently faces a negative downtrend trending towards the year open of $1210.28 per ounce.

Trend history:

Gold rallied which began in January 2017 finds resistance at 1295.28 per ounce in April 2017 and formed a double top in June 2017, this spur the beginning of the downward movement currently seen in the price of the commodity.

Technically speaking, the precious metal breached the intermediate upward sloping trendline at $1234.67 per ounce to signal a downward trend and now trading at the neckline of the double top price pattern. 

From the weekly chart above, the downward movement is expected in Gold to $1200 a psychologically support level, a breach above this level would see the precious metal test the major upward trendline at $1268

Expectation:

We expect the downside to continue with a mild pullback. Price eyes $1200 as major profit taking level

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