Bearish Engulfing Highlights A Reversal

• RES 4: $1992.5 - High Sep 1
• RES 3: $1973.6 - High Sep 16 and a key near-term resistance
• RES 2: $1955.7 - High Sep 21
• RES 1: $1921.2 - High Oct 6 and the key intraday resistance
• PRICE: $1886.2 @ 07:03 BST Oct 7
• SUP 1: $1873.0 - Intraday low
• SUP 2: $1848.9 - High Sep 24 and the bear trigger
• SUP 3: $1841.2 - Low Jul 22
• SUP 4: $1837.1 - 38.2% retracement of the Mar - Aug uptrend

Gold traded lower yesterday. A bearish theme remains intact and yesterday's gains reinforce this outlook. In pattern terms, yesterday's price action is a bearish engulfing reversal and signals the end of the recent corrective bounce. If correct, this highlights risk for a move lower to retest the major support at $1848.9. A break would confirm a resumption of the downtrend. A move above $1921.6, Oct 6 high would instead resume bullish pressure.