Technical outlook and chart setups:
Gold is bouncing off the trend line support with the 15-month range bottom around $1,180.00/85.00 levels as seen here. The metal has produced an engulfing bullish candlestick signal on the daily chart at yesterdays' close. Trading at $1,206.00 levels for now, the metal is expected to rally from here on. Immediate support remains at $1,180.00/85.00 levels while resistance is at $1,230.00/40.00, followed by $1,273.00/75.00 and higher respectively. It is recommended to initiate long positions now, risk remains at $1,180.00. A bullish follow through towards $1,230.00/40.00 would be extremely encouraging for the bulls.
Trading recommendations:
Initiate long positions now, stop at $1,180.00, target is open.
Good luck!
