Technical outlook and chart setups:
1. Gold has finally broken down the trend line support as seen on the 8H chart view. It can be now confirmed that the metal should be headed lower in a corrective 3 waves towards $1,250.00/60.00 from here on. Recommendations are to go long (aggressive trade setups), risk just below yesterdays lows. More conservative setup would be to sell on a rally through $1,359.00 as seen here.
2. Immediate support is at $1,240.00/50.00, followed by $1,210.00 and lower, while resistance is at $1,388.00 respectively.
3. The structure reveals that wave 1 of correction is over now. Wave 2 should rally towards $1,359.00/60.00 and then wave 3 towards $1,250.00/60.00.
Trading recommendations:
1. Aggressive trade setup would be long now, stop below $1,305.00, target $1,359.00
2. Sell at $1,359.00, set stop at $1,389.00, target is at $1,260.00
3. Buy $1,260.00, place stop at $1,230.00, target would remain open.
Good luck!
