Technical Outlook and Chart Setups:
It looks like the yellow metal is preparing to go down towards 1720.00 level. Till the time prices stay below the highs at 1775/80 levels, expect a break down. As depicted above, gold seems to be carving out a wave 2 or a lower high before prices fall aggressively towards at least 1720.00 level. We recommend traders to remain/go short now since the risk reward ratio offered is better. Moreover, a break of the short-term trend line will instill further confidence towards downside.
Trading Recommendations:
Remain/enter short at current levels (1772.00), stop at 1785.00, target at 1719.00.
Good Luck!
