Technical outlook and chart setups:
Gold is preparing for a pullback now. After rallying to 1,410/15 overnight, the metal can be near resistance at the moment, and wave 3 within the overall correction can be under way any moment now. It is, therefore, recommended to remain short for now. Initial targets are pointing towards the 1,335/40 levels. This is the confluence of fibonacci retracements and extensions of upswings and downswings respectively. Furthermore, the rising trendline also passes through the same area as seen here, with the previous resistance turned to support around the 1,345/50 levels. Keeping all the above facts in mind, we can conclude that the metal is heading towards the 1,330/50 area.
Trading recommendations:
Remain short, stop above 1,440 (to be revised soon), target is at 1,350.
Good luck!
