Technical outlook and chart setups:
The metal has fallen below the 21.00 levels stopping us out of long positions yesterday. It is recommended to remain flat for now, though the overall structure still remains constructive due to following reasons:
1. The rising trendline for sub 18.00 levels still remains intact.
2. The fibonacci 0.618 support is where the metal has produced a bullish bounce.
3. Past resistance turned support area is around the same levels of yesterday's lows.
Initial resistance is at the 22.00 levels now, while support is at the 19.00 levels. A push through the 22.00 levels would keep the uptrend intact, while a break below the trendline would result into further bearishness.
Trading recommendations:
1. Conservative: Remain flat for now.
2. Aggressive: Initiate long positions 50% now, stop at 20.00
Good luck!
