Technical outlook and chart setups:
1. Gold might be already unfolding its Right Shoulder as depicted here; around the $1,277.00 region. It is slight above what we earlier discussed ($1,260.00) but shoulders are not always in line. A bullish candlestick reversal here, would potentially be considered as the right shoulder. Recommendations are to remain long from yesterday and also add further on dips towards $1,260.00 levels. Risk remains below $1,240.00 for now.
2.Intermediary resistance is at $1,350.00 level (the back side of rising trend line), followed by $1,410.00/20.00 and higher up, while support is at $1,230.00/40.00, followed by $1,210.00 and lower respectively.
3. The entire structure indicates that a potential right shoulder is being formed at current levels or would form around the $1,250.00/60.00 region. In any case, buying on dips remain the trade mantra.
Trading recommendations:
Remain long, set stop below $1,240.00, target is at least at $1,430.00
Good luck!
