Technical outlook:
Gold prices raised through the $1,830-31 levels on Monday during the past hour. The yellow metal has moved in tune with our earlier projection and has also taken out the initial resistance around $1,828 with ease. Ideally, prices should pull back slightly toward $1,815 and $1,803 before resuming a counter-trend rally.
Gold has been dropping since the $2,070 high and has completed a meaningful down trade cycle as marked on the chart here. Further, bears have been successful in carving a meaningful downswing between $1,998 and $1,786. As expected, the counter-trend rally is now underway towards the $1,910-20 area.
Also, note that the Fibonacci 0.618 retracement of the above downswing is seen to be passing through $1,919. The high probability remains for a bearish turn if prices manage to reach there. Furthermore, the past support-turned-resistance is seen through the $1,900-1,905 zone. Bears might be inclined to come back in control thereafter.
Trading plan:
Potential rally through $1,900-20 against $1,780
Good luck!
