Technical outlook and chart setups:
The metal is right at the congestion of the following:
1. Past resistance becoming future support at 1,250.00.
2. Fibonacci retracement (0.50) of the rally between 680.00 to 1,900.00 levels.
3. Fibonacci extensions of the down cycle from 1,900 to sub 1,500 levels.
A bullish reversal here should be bought against current lows. Another potential remains for the metal to test 0.618 retracement levels near 1,150.00 level before reversing for good. Watch out for a reversal at current levels or 1,150.00 level to enter long positions.
Trading recommendations:
Flat for now. Looking for bullish reversal.
Good luck!
