Technical outlook and chart setups:
As it was expected and discussed yesterday, the yellow metal broke out pennant formation and tested the backside of the past resistance zone at 1,585.00, which is now support. This can be defined as an ideal sideways consolidation and breakout which normally completes in 3 steps:
1. Breakout candle. 2. Back testing (past resistance is at 1,585.00). 3. Thrust rally.
Taking it into consideration, for a rally towards 1,650/60 levels in the coming sessions, it is yet strongly recommended to hold long positions and even look to add further. Also the lined up resistances are placed at 1,650.00 and 1,680.00 respectively. 1,585/84 remains immediate support, followed by 1,555.00 and lower. Bottom line: The stage is set for a rally towards 1,660 level at least. Looking higher.
Trading recommendations:
Stay long, buy further now, stop is at 1,550, target 1 is at 1,660.00, and target 2 is open.
Good Luck!
