Technical Outlook and Chart Setups:
The overall structure remains very much constructive for bulls as depicted here. Yesterday an engulfing bullish signal appeared on Daily Chart. This further adds to the bullish stance taken by the yellow metal. Immediate major support is at 1,626.00, the Friday’s low. Till the time the prices stay above this level, it is strongly recommended to buy every intraday dip. There are 5 strong technical convergences depicted here:
1. Trendline support
2. Past Resistance Turned Support
3. The 0.618 fibonacci support of large upswing between 1,530 to 1,795.00
4. The 1.271 extension of the downswing between 1,795.00 to 1,672.00.
5. Eungulfing Bullish Signal is appearing.
Trading Recommendations:
Keep long positions taken earlier, buy on dips, stop is at 1,600/10, and target is open.
Good Luck!
