Technical outlook and chart setups:
Gold is trading at $1,225.00/26.00 after having hit resistance at $1,240.00 in early hours of today's trade. Please note that we had expected this counter-trend rally to terminate around $1,235.00 levels, and discussed the same earlier. Furthermore, please note that the metal has reversed from a convergence of Fibonacci 0.618 resistance and the support trend line resistance as seen here. The metal might push through $1,233.00/34.00 for one last time before dropping lower towards $1,163.00 and $1,146.00. It is hence recommended to remain short now with risk at $1,265.00/66.00. Immediate resistance is seen at $1,250.00, while support is seen at $1,200.00.
Trading recommendations:
Remain short now with stop at $1,265.00/66.00, a target is at $1,146.00.
Good luck!
