Technical outlook and chart setups:
1. Gold has produced an engulfing bearish candle stick yesterday. Currently trading at $1,241.00, it is recommended to remain short and also sell intraday rallies. Risk is at $1,270.00 at present.
2. Immediate resistance is at $1,270.00, followed by $1,279.00, while supports are spread through $1,230.00, followed by $1,220.00, and $1,182.00 respectively.
3. The structure reveals that Gold is retracing at the moment towards $1,220.00 levels. Please note that 0.618 fibonacci support is at $1, 218.00 and a bullish reaction is expected there. The next bullish swing would resume from there on. $1,182.00 remains key for the trend.
Trading recommendations:
Remain short for now, stop at $1,270.00, target $1,220.00.
Good luck!
