Gold Breaks Bullish Channel - Time To Trade Bearish Dragon Now

Yesterday, the Gold traded exactly as we forecasted in our Choppy Session In The Gold - Is it a good time to short update. The Greenback had a tough week as the dollar index continues to trade bearish. In the wake of high impact economic events, we may see another wave of volatility during the US session.

GOLD / XAUUSD - Bearish Dragon
Traders, as you can see on the hourly chart, Gold is peaking out of the bullish channel and the closing of candles outside the range $1,342 - $1,336 represents the bearish bias of investors.

Gold - Hourly Chart - Bearish Dragon
The harmonic pattern called bearish dragon is also in play. It has completed the C to D leg $1,336. Since this support level is broken, it's likely to work as a resistance level for the Gold. Lastly, the lagging indicator also had a crossover at $1,336. So, we can't ignore the importance of $1,336 today.

Gold // XAUUSD - Trading Plan
The idea is to stay bearish below $1,337 with a stop above $1,341 and take profit at $1,331 and $1,328. Good luck.