Facts:

• GOLD price bounced off the resistance at 4426
• Main trend from the end of August remains downward

Recommendation: Trade: Short position on GOLD at market price Target: 4316, 4288 Stop: 4450

Opinion: The gold market has been trading in a downward move recently. Looking at the technical situation, one can see that the precious metal bounced off the key resistance at $4426. This resistance is a result of previous price reactions, as well as the upper limit of 1:1 structure. According to the Overbalance strategy, as long as the price sits below $4426, one should expect the price to continue to fall. In addition the price sits below the 100-period moving average from H1 interval. We recommend going short GOLD at market price with two targets: 4316 and 4288. We recommend placing a stop loss order at 4450.

Source: xStation5