Gold Technical Analysis: Set-up remains in favor of bearish traders; sustained break through $1270 support awaited

   •  The precious metal extended its sideways consolidative price action for the fourth consecutive session on Tuesday, forming a rectangle on hourly charts.

   •  A rectangle is a continuation pattern that forms as a trading range during a pause in the trend but sometimes also marks significant trend bottoms/tops. 

   •  However, given that the overnight attempted bounce was sold into near 100-hour EMA, the formation might still be categorized as a bearish continuation. 

   •  Moreover, technical indicators on hourly/daily charts remained well within the bearish territory and further add credence to the negative outlook.

   •  A decisive break through the rectangle support, coinciding with 50% Fibo. level of the $1196-$1347 up-move will reinforce the bearish bias and open room for further downside.

Gold 1-hourly chart