Technical Outlook and Chart Setups:
Please focus on the larger picture presented repeatedly since last several trading sessions. It is important to notice a larger AB boundary and C, which is already in place at 1,626.00 level. The yellow metal has bounced back sharply since then and the best part is the support at 1,626.00 which is being held well till now. Believe it or not, one cannot expect a better optimized buying opportunity than the current one; the reasons are mentioned below:
1. Prices have bounced off the Trendline support.
2. A Fibonacci retracement/support of 0.618 of the upswing AB converging.
3. A Fibonacci extension of 1.271 of the downswing 1,795.00 to 1,672.00 converging.
4. Past resistance turned support converging.
5. Engulfing Bullish Signal appearance on the Daily Chart. The yellow metal is headed towards a huge upswing from here on till 1,626.00 remains intact.
Trading Recommendations:
Strong suggestions to hold on long positions taken earlier, buy further on dips, stop is at 1,600/10, and target is open.
Good Luck!
