Technical outlook and chart setups:
1. Gold takes out $1,370.00 levels with ease yesterday. It is recommended to let it form a top now and show reversal signs to enter short positions again. It should break at least $1,327.00 to confirm that an intermediary top is in place. It is recommended to remain flat for now.
2. Immediate resistance is now at $1,371.00, while support levels are spread through $1,327.00, followed by $1,320.00, $1,280, $1,230/40 and lower respectively.
3. The structure reveals that prices should form a right shoulder of the potential head and shoulder inverted. Look to buy lower around $1,250.00/60.00.
Trading recommendations:
Flat for now.
Good luck!
