Technical outlook and chart setups:
1. Gold prints a low a few cents below the previous lows ($1,277.60/70), before pulling back sharply.The risk on long positions still remains at $1,275.00. Th metal could possible reverse from current lows towards the mid $1,300.00 region again. However, a break below $1,275.00 now, would expose $1,230.00 levels.
2. Support is at $1,230.00/40.00, followed by $1,210.00 and lower while resistance is at $1,330.00 (intermediary), followed by $1,388.00 respectively.
3. The structure indicates that Gold can still manage to rally provided $1,275.00/77.00 levels remain intact. A break below would delay matters.
Trading recommendations:
Hold on to long positions, stop is at $1,275.00, target is open.
Good luck!
