Technical outlook and chart setups:
1. Gold has tested lows just below the $1,280.00 mark today, before pulling back. The 8H chart view is producing a doji candle stick pattern, which still indicates a possible reversal on cards. It is hereby recommended to initiate 50% long positions at current price ($1,285.30) and remaining 50% around the $1,250.00/60.00 mark. Risk is below $1,240.00 for now.
2. Immediate support is seen at $1,230.00/40.00 levels, followed by $1,210.00 and $1,180.00 while resistance is seen at $1,350.00 (trend line support turned resistance), followed by $1,388.00 respectively.
3. The structure indicates that Gold is poised to stage a rally from current levels or $1,260.00 region. Also note that the 0.618 fibonacci support is also passing through the same region. Buying on dips remains the trade strategy.
Trading recommendations:
Buy 50% now ($1,285.00), set stop below $1,240.00, target is at a new high.
Short-term trading: Buy now, with stop at $1,275.00 and target at $1,300.00/$1,330.00, and $1,350.00.
Good luck!
