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Goldman Sachs’ analysts are out with their technical outlook on gold, indicating where to watch for a reversal after the prices breached the crucial $ 1,302 support.

Key Quotes:

“Gold broke below 1,302 support after having held the level for over a week.

The break of 1,302 opened downside risks to 1,275-1,263. This area includes the trend across the lows since July as well as a 5th wave target from April. This should, in theory, be an ideal location to watch for signs of a reversal.

From a wave perspective, getting to 1,275-1,263 could mean completing an expanding flat from January. As such, it will be important to observe whether the recovery from that point onwards takes on an impulsive nature. An expanding flat is a continuation pattern, which in this context means an eventual resumption of the underlying uptrend.

View: Target/turn neutral, consider bullish exposure between 1,275 and 1,263.”