Gold has been in a downtrend since reaching a high of 2042. It is now trading below a descending trend line that connects the lower highs. The price is also in a channel between 2024 and 2015, which acts as a dynamic resistance and support.
Recently, gold formed a bearish flag pattern, which is a continuation signal for the downtrend. The flag pole measures about 30 points, which gives us a target of 1995 for the breakdown. The flag is also near the upper boundary of the channel and the trend line, which adds to the bearish pressure.
Therefore, I suggest taking a short position on gold, with a stop loss above the flag and the trend line, and a take profit at 1995. This trade offers a risk-reward ratio of about 1:5.
**Entry:** 2023
**Stop loss:** 2028
**Take profit:** 1995
**Risk-reward ratio:** 1:5
Recently, gold formed a bearish flag pattern, which is a continuation signal for the downtrend. The flag pole measures about 30 points, which gives us a target of 1995 for the breakdown. The flag is also near the upper boundary of the channel and the trend line, which adds to the bearish pressure.
Therefore, I suggest taking a short position on gold, with a stop loss above the flag and the trend line, and a take profit at 1995. This trade offers a risk-reward ratio of about 1:5.
**Entry:** 2023
**Stop loss:** 2028
**Take profit:** 1995
**Risk-reward ratio:** 1:5