Gold failed to make any inroads on the topside and we have come back to the short term 23.6 fib level at 1379. Now the market isn't oversold and all stochastics across all timeframes are pointing lower.
This suggests that we should break this support and trade lower. However, as it is quite a good support, we could attempt very small longs to here and leave a tight stop. If we do hold this support there is scope to trade higher and we would be looking at 1384 to 1385. It is unlikely under current market conditions that we would be able to break above here, thus all longs are to be covered.
Now if we lose 1379 we look for the market to trade lower and we would be looking at 1374/72 initially. If this fails to hold, look for further weakness down to 1365 possibly 1360.