Gold slumped below the 1850 mark yesterday having failed to form even a full-fledged corrective upward movement. By the end of yesterday’s session there are no signs of bears’ weakness, therefore we can expect an extension of decline in direction of the psychologically important support 1800.00, where profit taking by sellers might take place and upward correction as a consequence.
Local structure got too massive and big downswing that forces the market to perform a slight correction before the fall probably will resume. Optimal zone of new sell-offs appears 1835.00-1840.00. Also we need to note pivot-level 1852.39, which might be tested in case of full-fledged upward correction.
Main scenario: Pullback to 1835.00-1840.00, then decline to 1800.00.
Alternative scenario: In case of growth above 1840.00 correction will be extended to 1852.39, where we would expect a downward reversal.
Shorts from 1835.00-1840.00 and 1852.39 to 1800.00.