Technical outlook:
We have presented a 4H chart view for Gold since $1,235 lows, to have a bigger picture. It is quite clear that Gold has been in a religious uptrend since it made a major swing low at $1,160 earlier. It has rallied through $1,315/16 levels at this point in writing and may hit $1,320 before finding resistance. The yellow metal is clearly trading in the buy zone of its support trend lines and the bias remains unchanged until it breaks below $1,285.00 levels. Immediate support comes in at $1,297.00, while resistance is expected to come in around $1,315/20 levels respectively. Those who had initiated long positions earlier could be looking to take profits around current price action or around $1,320 respectively. Please note that prices need to break below $1,297.00 levels to confirm that a meaningful top could be in place. Aggressive traders might want to initiate short positions on a bearish reversal around $1,317/20 levels.
Trading plan:
Please book profits on long positions taken earlier @ 1,315/20. Shall be looking to go short from there.
Good luck!
