Gold broke through the previous level of support, but could not continue the downward movement and after the formation of rather significant volume at the bottom of the chart grew sharply up. It is worth noting the new volume support level of 1272.90, from which the price rebounded sharply upwards. Nevertheless, given the downward trend and the fact that the price growth was not on large, but on increased volume, it is worth considering the scenario of the fall and a breakdown of the level of support. The movement should be sharp and on large volume, which will be a more accurate signal for entering the market. A stop loss should be placed slightly above the volume breakout bar. The first target of the deal is 120 points, the second - 220 points.
The bottom line: short positions after a sure breakdown of the support.