Technical outlook and chart setups:
As seen here, the yellow metal has broken down towards the Fibonacci 0.68 support of the rally from 1,324.00 to 1,488.00 level recently. It is recommended to book maximum short positions and take profits on them; one can remain 10% short. If a bullish reaction is seen here, Gold could begin further rally, but this is too early to confirm. More probabilities are for the metal to break below 1,320.00 level in the coming trading sessions and probably form a bottom around 1,290/1,300. From there on it would be safe to initiate long positions in the metal. Bottom line: Looking lower yet, but book maximum profits on short positions.
Trading recommendations:
Remain only 10% short. Book profits in the remaining.
Good luck!
