Technical outlook and chart setups:
1. Gold has rallied through the $1,266.00 levels before pulling back. Please note that the 0.618 fibonacci resistance is also at $1,266.00. A reversal now could bring prices lower towards $1,218.00. It is recommended to remain short; the risk remains at $1,285.00.
2. Immediate resistance is at $1,279.00 (intermediary) followed by $1,290.00/95.00 and higher, while support is at $1,230.00 followed by $1,220.00/10.00 and lower respectively.
3. The structure reveals that a meaningful low could be in place at $1,182.00 now. Gold is likley to retrace lower towards the $1,215.00 zone before reversing. A break of $1,230.00 would accelerate the fall.
Trading recommendations:
Remain short, stop at $1,285.00, target at $1,220.00.
Good luck!
