FX.co ★ Gold 01.29.2020 - Downside break of the Pitchfork warning line 1, more downside yet to come

Technical analysis:

Gold has been trading to the downside. Price tested our downward target at the price of $1.568. I see further downside continuation and potential test of $1.563 and $1.557.

My advice is to watch for selling opportunities on the rallies with the first downward target at $1.563.

Stochastic oscillator is showing overbought condition, which is sign that selling might come from here. There is also breakout of the Pitchfork warning line 1 and potential test of the second.

Resistance levels are set at the price of $1.572 and $1.578

Support levels and downward targets are set at the price of $1.563, $1.557 and $1.546.