Technical outlook and chart setups:
A 4H chart view has been presented here today. As depicted here, the yellow metal has been drifting in a diamond shape, pennant formation since Dec 20, 2012 to date. Furthermore, prices are facing resistance at the sloping downtrend line, shown here. It is a more likely possibility that prices correct towards 1,645/50 levels before finally breaking through the trendline. Initial resistance is at 1,690/95, followed by 1,725.00, and 1,750/53; while support extends through the 1,630.00 level respectively. It is highly recommended to hold long positions taken earlier and look to further add on dips towards 1,650 levels.
Trade recommendations:
Hold on to long positions taken earlier, buy further on intraday dips towards 1,645.00, stop is at 1,600/10, and target remains open.
Good Luck!
