Technical outlook:
This analysis a more detailed review for Gold on a 4H time frame. Continuing our discussions from yesterday, the metal is working on a recent downswing between $1520 and $1445 levels respectively. Since the intermediary trend has been corrective (lower) since $1557, resistance can be defined at $1520 while interim support (potential remains for yet another low) is at $1445 levels respectively. The counter trend rally since $1445 lows has managed to test 50% retracement of the above downswing at $1486 until now. Please note that probabilities remain for a push through $1491 which is 61.8% retracement before continuing lower again. Furthermore, the down trend line connecting highs since $1557 levels is also passing through $1491 levels and would provide resistance for a potential bearish bounce. On the flip side, if prices manage to break above $1520, it will be confirmed that gold is heading higher and is safe to buy on dips. For now, a safe trading strategy is to sell on rallies through $1491.
Trading plan:
Sell around $1491, stop at $1520, target below $1445
Good luck!
