Technical outlook and chart setups:
Gold has rallied sharply from $1,142.00/43.00 levels yesterday, and made highs at $1,220.00, before pulling back. Please note that the metal has bounced off the 0.786 fibonacci support of the rally from $1,130.00 to $1,207.00 as depicted here. Minimum extensions of the rally are pointing towards $1,255.00 levels. It is recommended to enter long positions on dips from here on. Immediate support is $1,142.00/43.00, followed by $1,130.00 and lower while resistance is at $1,235.00, followed by $1,255.00 and higher respectively. Bulls should remain in control for now and push prices higher around at least $1,255.00.
Trading recommendations:
Buy on intraday dips, stop at $1,140.00, the target is open.
Good luck!
