Precious metal downfall time! (XAU)
Formed a large shooting star on the weekly last week, then followed by this weekly closure of an exceedingly large bearish engulfing. Monthly February closure also formed a shooting star, touching the monthly descending trend line, forming our next lower high, but however, we are forming this symmetrical triangle, so we are making higher lows on the monthly. First target projection is at 1250.00. We also broke the daily trend line very harshly, making a lower high on the daily. Monday morning however, we may see a slight pullback due to the bounce of the key zone 1290.00, which may entice Sunday night/Monday morning traders to get a short term buy... i am looking for this slight phase to reach to 1303.00, which will be my entry point with a candlestick close on the 4hr to give me my downside confluence. A strong break and close above 1303.00, we could see movements back to 1340, or the monthly trend line again before falling down to projected targets.
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