Technical outlook and chart setups:
The weekly chart view is presented here. The yellow metal has been overall in an uptrend since 2008 lows, but has been drifting sideways after registering highs above 1,900.00 level. After the wedge breakout around 1,650.00, the metal rallied through 1,798.00 level, which had been defined as strong resistance. The current fall, which has technically defied all Fibonacci convergence levels, proves that sideways movement continues in the yellow metal and that it need to be traded accordingly. Keeping this view in mind, the area which is in range 1,525.00 to 1,540/50 is the support zone, as seen on the chart view. A bullish bounce here on 1hour/4 hour charts should be bought. On the other hand, a break below 1,525.00 should be sold aggressively.
Trading recommendations:
Hold long positions taken earlier, buy further on a bullish bounce between 1,540/50; stop at 1,520.00, target open. A break below 1,525.00 should be sold aggressively.
Good Luck!
