Technical outlook and chart setups:
The metal has just met with out expected downside target at 1,350.00. It is strongly recommended to exit short positions now and look to initiate long positions at current level (1,340/45). The following reasons would be enough to take long positions:
1. Prices are at past resistance turned support at 1,340/50.
2. The trend line from 1,180.00 level is passing just across current price action.
3. Prices are between Fibonacci retracements of 0.5 and 0.618 of recent rally from 1,270 to 1,440 levels.
4. Downside extensions also have been met at 1,340.00 level.
Support is at 1,310, followed by 1,270.00 and lower, while intermediary resistance is at 1,440.00.
Trading recommendations:
Exit short positions. Go long, stop is at 1,270, and target is open.
Good luck!
