On May 16 Gold formed a bear flag — figure on the continuation of the original motion. On the 15-minute chart I’ve marked with orange zones some highly probable entry points.
We’ll start our analysis with a daily chart. Gold has penetrated a two months’ support $1280-$1287on May 27, and then it was aggressively sold out. There were a $1240 support formed at the beginning of June, which I’ve mentioned earlier. After some resistance levels were penetrated ($1249, $1257) gold has reached a potential resistance and then started to fall with a current top of $1285. The potential buying area is a little bit lower — $1270, and there are 8/21 EMA.
Let’s look at the short-term 15-minute chart to find some tips and good entry points. We should point out a red reversal candle near the potential daily resistance rate where the downtrend has started ($1279-$1285). Then buyers tried to restore control but they failed. The flag (trend line) was then broken through with a big bearish candle, which also penetrated the key moving averages and activated my entry with a Put option. The penetration of the lows gave us one more reliable opportunity.