On the one hand, it has created new lower lows and lowers highs keeping the downtrend intact and offering a few but new shorting opportunities. Currently it has retested the ~1276 area and bounced off the 10 with a close below. The session has been dominated by sellers but does this hold to continue sinking further to 1240? We have ourselves, on the other hand, telling us that potentially it could pull back further. Since price speaks greater volumes by leading than lagging oscillators, this could be an aggressive selling opportunity with a reward:risk ~1:1 below today's close. For the strategy disciplined and seasoned trader this dilemma wouldn't exist.
entry = below today's bar
stop loss = above today's bar
target = near term support (1240)
WORD OF CAUTION: NFP on Friday. It'll still be interesting to see where Gold goes.