Gold technical analysis: Risks skewed to the downside after failed breakout

• Gold's daily chart shows a failed falling channel breakout. 
• Monday's drop confirmed a bearish candlestick reversal pattern. 
• The yellow metal could drop to support at $1,481. 

Gold is looking south, having witnessed a failed breakout in the previous two trading days.

The yellow metal closed at $1,504 on Friday, confirming an upside break of a falling channel, represented by Sept. 4 and Sept. 24 highs and Sept. 10 and Oct. 1 lows. 

The breakout was confirmed with a Gravestone Doji and looked weak and was short-lived, as prices fell 0.80% on Monday. 

Put simply, Monday's close at $1,490 activated twin bearish cues: a failed breakout and a Gravestone Doji reversal. 

Gold, therefore, is likely to face selling pressure on Tuesday. The yellow metal is currently trading at $1,491 per Oz and could drop to support at $1,481 (Oct. 22 low). 

The bearish case would be invalidated if prices rise above Monday's high of $1,508.

Daily chart

Trend: Bearish

Technical levels