Technical outlook and chart setups:
The metal has almost met minimum expectations at 1,270.00 levels this morning. It is recommended to book maximum profits at this point and to refrain from initiating fresh short positions now. Possibilities remain for a further slide towards the 1,250.00 levels, while a rally has not started. Immediate support is at 1,210.00 followed by 1,180.00 as depicted in the daily chart here. The 1,240/50 area is re-enforced by the past resistance turned to support, fibonacci levels of the rally are from 1,180.00 to 1,340/50 and also the downside extensions of the fall from 1340/50 are possible. Watch out for a bullish reversal there.
Trading recommendations:
Book max profits from short positions initiated earlier and move stop to break-even. Exit before 1,250.
Good luck!
