Technical outlook and chart setups:
1. Gold had begun its counter trend rally towards $1,350.00 levels as expected now. It is recommended to remain long, with risk at $1,277.00. Please note that $1,345.00/50.00 is also the fibonacci 0.618 retracement of the recent downswing from sub $1,388.00 to $1,277.00 levels and back side of the support turned resistance line as seen here. A bearish reaction could be expected from those levels.
2. Support is at $1,30.00/40.00, followed by $1,210.00 and lower, while resistance is at $1,345.00/50.00, followed by $1,388.00/90.00 and higher respectively.
3. The structure indicates that Gold counter trend rally may end at $1,345.00/50.00 levels at least. Only a push through $1,370.00 levels would be bullish and move prices towards fresh highs.
Trading recommendations:
Remain long, set stop at $1,277.00, target is at $1,345.00.
Good luck!
