Technical outlook and chart setups:
Gold has been moving sideways in an ideal cone formation as depicted on the hourly chart view here. The metal dipped lower towards $1,150.00/51.00 again after hitting a high of $1,164.00 yesterday. It has found consolidation trend line support and bounced back, trading around $1,153.00/55.00 levels at the moment. Bulls seem to have taken control back and are poised to push the metal higher towards at least $1,160.00 again. A break higher above $1,164.00 would be extremely bullish for the yellow metal and confirms that an intermediary bottom is in place at the $1,147.00 level. It is hence recommended to remain long with risk at the level of $1,130.00. Immediate support is seen at $1,147.00 (interim), followed by $1,130.00, while resistance is seen at the $1,166.00/70.00 level respectively.
Trading recommendations:
Remain long, stop at $1,147.00, target is open.
Good luck!
