Technical outlook:
Gold hourly chart setups look to be poised for an extended rally towards at least $1,250.00 levels if not higher. Please note that this is just a corrective rally and not a change in trend that we are expecting. The push could also move towards $1,265.00 levels before it finds resistance as shown here. Gold chart setups show that the metal has pushed 3 waves up from $1,211 through $1,235 levels and has corrected lower in 3 waves as well. A potential 5 waves rally from here could complete a flat corrective wave structure. Also please note that the metal is finding support around Fibonacci 0.618 levels for now and a bullish reversal is high probable trade direction from here on.
Trading plan:
Remain long now, $1,220.00, stop below $1,211, target is $1,250 and $1,265
Fundamental outlook:
There are no major events lined up for the day.
Good luck!
