Technical outlook and chart setups:
1. Gold pulls back sharply from $1,330.00 levels as expected and towards $1,290.00/$1,300.00 levels as seen here. The bullish bounce indicates that long positions can be taken at current levels ($1301.00/03.00), risk remains at $1,277.00. Bulls shall remain in control till prices remain above $1,277.00.
2. Support is seen at $1,277.00 (intermediary), followed by $1,230.00/40, $1,210.00 and lower respectively, while resistance is seen at $1,350.00/60.00 levels ], followed by $1,388.00 respectively.
3. The structure indicated that Gold remains buy on dips till prices remain above $1,277.00 for now. The counter trend rally that began from $1,277.00 should resume towards $1,350.00/60.00.
Trading recommendations:
Remain long/initiate longs, stop is at $1,277.00, target is open.
