Technical outlook and chart setups:
Gold has managed to hit highs at $1,268.38 levels for now but it is just a test of previous highs at $1,263.00/64.00 levels as of now. The metal has produced a pin bar candlestick pattern on the 4H chart view, indicating a potential drop, going forward. The metal still remains in a corrective wave 4 which has exceeded previous highs as a test. Bears are expected to take back control from here and drop prices to at least $1,190.00 levels before giving in to bulls. It is hence recommended to remain short (small positions), with risk above $1,268.00 levels. Immediate resistance is seen at $1,268.00 levels, while support is at $1,237.00 levels respectively.
Trading recommendations:
Remain short now, stop above $1,268.00, a target is $1,190.00.
Good luck!
