Gold has thus far successfully tested its recent low and support at 1208 (22/09/2014 low). A break of the hourly resistance at 1236 is needed to invalidate the short-term bearish trend. Other resistances can be found at 1243 (16/09/2014 high) and 1258.

In the long-term, we are sceptical that the horizontal range between the strong support at 1181 (28/06/2013 low) and the major resistance at 1434 (30/08/2013 high) is a long-term bullish reversal pattern. As a result, a decline towards the low of this range is eventually favoured. The recent break to the downside out of the symmetrical triangle confirms this scenario.

Daily Technical Report