Gold prices have come under pressure following the Federal Reserve's commitment to continue with a slow-paced rate hike until inflation is contained. A view of the chart on the 4-hour time frame prints all shades of bearish in all instances.
First, we had a very strong drop from $1960 which eventually saw bullish expectations of price hitting $2000 hit the rocks when price ended up falling below the $1900 psychological level. After the rout, the price went into a buoyant consolidation and it seemed the bulls were trying to kick start another move to recoup some losses but on observation, the price was printing a Bearish flag pattern which could be a sign of more moves to the downside.
Eventually, a breakout occurred as was anticipated with the textbook set-up (Bearish flag pattern). Now, what is before us is price steadily printing Lower Highs (LH) and Lower Lows (LL) and by the time we connect the swing points at both ends with a trendline we will arrive at Descending channel which is limiting bullish excesses.
First, we had a very strong drop from $1960 which eventually saw bullish expectations of price hitting $2000 hit the rocks when price ended up falling below the $1900 psychological level. After the rout, the price went into a buoyant consolidation and it seemed the bulls were trying to kick start another move to recoup some losses but on observation, the price was printing a Bearish flag pattern which could be a sign of more moves to the downside.
Eventually, a breakout occurred as was anticipated with the textbook set-up (Bearish flag pattern). Now, what is before us is price steadily printing Lower Highs (LH) and Lower Lows (LL) and by the time we connect the swing points at both ends with a trendline we will arrive at Descending channel which is limiting bullish excesses.