Technical outlook and chart setups:
Gold rallied into the $1,234.00/35.00 levels yesterday before retracing back towards $1,221.00/22.00 at close. A 1H chart view has been presented here for a closer look at the smaller wave structures. As seen here, a short-term resistance at $1,228.50, has been taken out by bulls. Furthermore the line of resistance from the $1,270.00 levels had also been broken on the higher side and the metal is testing its back side, which is resistance turned support at the moment, around $1,220.00. Also the fibonacci 0.50% support is passing through the same region as depicted here. All above indications are proof enough to support the view of a rally into at least $1,250.00 levels if not higher.
Trading recommendations:
Initiate long positions now ($1,222.00), stop at $1,201.50, target is open.
Good luck!
