Technical outlook and chart setups:
Gold is trading lower at $1,251.00 levels for now, looking to pullback towards $1,265.00 levels at least, before resuming its drop. Please note that the yellow metal should retrace at least towards $1,190.00 levels before deciding its next big move. The larger structure indicates that Gold might have completed a 5 wave rally from $1,046.00 through $1,279.00 levels respectively. The metal is now expected to produce a corrective (3 wave) drop lower towards $1,190.00 and subsequently $1,135.00 levels as well. Another probability is that the metal drops into $1,190.00 levels and then rallies through $1,300.00 levels to complete the rally. In any case, a drop towards $1,190.00 levels appears to be most prominent at the moment. It is recommended to continue holding short positions with risk above $1,279.00 levels for now. Immediate support is seen at $1,230.00 levels, while resistance is at $1,279.00 levels respectively.
Trading recommendations:
Remain short for now, stop at $1,282.00, a target is $1,190.00.
Good luck!
