Technical outlook and chart setups:
Gold has rallied through the $1,230.00 levels yesterday taking out initial resistance at $1,225.00 levels. Also, note that the immediate sloping resistance line has been broken for now. This action indicates that bulls are back and are expected to stay there for a while now. It would be good to take partial profits of the long positions taken earlier and wait for a dip to enter long again. The fibonacci support levels are extending till $1,195.00 levels on the lower side. One can expect bullish bounce around $1,201.00/02.00, which is also coinciding over the back side of resistance turned support trend line for now. Strong support is seen at $1,183.00 levels while resistance is at $1,240.00 respectively.
Trading recommendations:
Book partial profits. Look to enter long again at $1,201.00/02, stop at $1,180.00, target is open.
Good luck!
