On the 20th of July Gold found its’ bottom after falling sharply for around a month. You can see that from that moment on the commodity has been going up in waves by forming bases and then rising further forming another base. There have actually been three levels of rise. Resistance of the first level was at 1110, resistance of the second base at: 1127 and finally the security reversed at 1170 forming two peaks. The first peak formed railroad track pattern (bullish candle up and then the next one down engulfing the bullish candle). The second peak represents a failed attempt of breakout of previous high. Gold managed to break above the first high by around 1.5 dollar per ounce before collapsing to the first level of support at 1145.
Railroad tracks and a bearish pin on 4 hour chart at resistance indicate that short term bullish trend is over and now gold price will head lower. Looking forward to next week we may state that resistance is now at 1145, where previous support was (according to rules of classical technical analysis). Support can be seen at 1125, 1120 and 1110 levels. I see 1110 as the strongest one and it will probably hold for next week. However, attempts to go above 1145 will probably fail and if one sees a bearish candle formation at that level, it will be a good signal to go short.
Momentum: BearishIntermediate trend: Neutral