Yellow metal forms descending triangle, bearish continuation..?

FX:XAUUSD   Gold Spot / U.S. Dollar
455 0 4
Gold             prices have been relentlessly tumbling from 1795.80 in October 2012 to the recent lows of 1064.34 levels.

Thereby, we've spotted a formation descending triangle in its price behavior.

In this declining process this metal has retraced almost more than 61.8% Fibonacci levels to touch base line of the triangle where it is sensing support.

But prevailing prices are steeping below 10DMA that signals current bearish trend to prolong further.

We undoubtedly reckon if the prevailing trend sustains and manages to slip below this line then further retracement up to 78.6% is certain (i.e. 950 levels in a medium term basis).

Recent week's breaches of 1154.16 and 1096 on a closing basis have prompted us to raise cautious approach on this precious metal.

Do you need more justifications?

RSI confirms bearish trend continuation: The pair at this psychological juncture testing supports, while RSI still evidences downward convergence with sharp declines both on monthly and weekly charts (Currently, trending around 36.4434 while articulating), so this indicator justifies current prices dips.

Stochastic supports bearish momentum: To substantiate these price slumps, slow stochastic curves view on monthly charts signifies to remain in sync with the standpoint offered by RSI . %D line crossover is maintaining even below 20 levels which is oversold zone bolsters more selling pressures, (Currently, %D line is at 6.7009 and %K at 5.1144 while articulating).

Since it has not managed to hold above crucial support levels, we still anticipate sharp dips further that seem certain events ahead until fed's decision, otherwise it's going to be pure gamble for expecting upswings ahead of Fed's monetary season.

Yellow metal forms descending triangle , break base to
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