Technical outlook and chart setups:
The existing setup depicted here, warns of a retracement/reversal and hence it is recommended to book profits on long positions taken earlier. Resistance is in the 1,390.00/1,420.00 region and bulls have failed to get past either of them. It remains possible that the metal atleast retraces to 1,300/10.00 levels or even further down before next rally materializes. Furthermore, it also remains possible that the entire rally from 1,180.00 to 1,380.00 could be a retracement of the existing larger downtrend and a new low may be formed below 1,180.00 in the coming weeks. Aggressive traders may initiate short positions around 1,370.00 levels, risk would be 1,390.00.
Trading recommendations:
Aggressive: Initiate short positions around 1,370.00, stop at 1,390.00
Conservative: Flat
Good luck!
