Gold on breakdown watch at $4700Gold / U.S. DollarFOREXCOM:XAUUSDFOREXcomGold looks heavy on the H4 timeframe, setting a string of lower highs so far this week, coinciding with higher US Treasury yields amid another surge in crude oil prices. With RSI (14) trending gradually lower beneath 50 and MACD now negative after crossing the signal line, it suggests traders should be alert to the risk of a potential downside break beneath $4700, a level that initially acted as resistance before flipping to provide support, including earlier today. If the price were to break beneath $4700, one setup to consider would be to sell with a tight stop above for protection, targeting either $4645, $4600 or $4550 depending on desired risk-reward from the trade. However, while the price action and descending triangle structure warn of an eventual downside break, given the number of dips bought beneath $4700 recently, long setups cannot be entirely overlooked either. Should we see another pullback and bounce from $4700, longs could be set with a tight stop below, targeting $4800 where the price has tended to gravitate towards lately and, beyond that, $4860 resistance. The merits of long setups would improve if the price were to break the minor downtrend it currently finds itself in. Good luck! DS