Bearish Price Action for Gold

The risk on trade is putting further downward pressure on gold. Combine that with the bearish technical setup( multiple divergences, triangle pattern break, Trendline pattern break, bearish evening star candlestick pattern) and the charts suggest this move has room to extend to the downside. Conservative pattern targets suggest the PML(previous monthly low) is in play which is 2970. That seems reasonable as it is a conservative target. As I write this gold is testing 3240 which is a PWL(previous weekly low) and it is acting as support. Gold is below its monthly pivot of 3266 so the bears and bulls will probably fight this one out for a day or two and then the picture will get clearer if this move wants to extend or it is simply a correction in a longer term uptrend.