Gold price has experienced a severe descending trend and could record the bottom price of 1320.30. This bottom price is fixed by the ascending candles in 4H time frame and is the most important supportive level in front of the price. As it is obvious in the picture below, the price has been stopped and formed a bottom price by reaching to the supportive edge of descending channel during the descending trend.Closing of descending candle of Spinning top pattern type in previous day shows indecision market for ascending or descending and the buyers doubt in reaching to the lower prices.
Also the combination of this pattern with the big descending candle on 15th day will create the Harami candle stick pattern that warns about formation of a bottom price and finally ascending of the price.
Between the top price of 1920.31 and the bottom price of 1320.30, there is AB=CD harmonic pattern with the ratios of 61.8 and 161.8 that from the D point of this pattern, there is the potential for ascending and price reformation.RSI indicator is in saturation sell area in daily time frame and also confirms the D point of harmonic pattern by the next cycle and warns about the possibility of changing price direction. Generally until the price level of 1320.30 is preserved, the price has the potential for reforming of the descending trend.