Technical outlook and chart setups:
Gold has been moving in a cone consolidation as seen here, after having made lows at $1,145.00 levels on November 11, 2014. The metal is awaiting a trigger to break out higher (above $1,170.00) or lower ($1,155.00) side. Resistance is seen at $1,207.00 (fibonacci 0.618), followed by $1,235.00/55 and higher while support is seen at $1,145.00 (interim), followed by $1,130.00 (interim) and lower. The metal is expected to continue drifting lower either from current levels or from $1,207.00/08. It is recommended to remain long for now, with risk being at $1,140.00. A dip below $1,140.00 and subsequently $1,130.00 confirms that Gold is headed lower.
Trading recommendations:
An aggressive trading strategy could be to remain long for now, stop at $1,140.00 target $1,208.00. A more conservative way is to remain flat for now, sell around $1,207 on bearish confirmation.
Good luck!
