Technical outlook and chart setups:
Gold is proving to be a classic text book example of the wave theory here. The metal completed its counter trend rally at $1,262.00/63.00 levels and is now looking to continue dropping lower towards $1,190.00 levels at least. Please also note that the metal has reversed from Fibonacci 0.618 resistance of the drop between $1,283.00 through $1,225.00 levels earlier. A pin bar candlestick formed on the 4H chart here also indicated a potential turn around. It is hence recommended to remain short for now, with risk above $1,283.00 levels. Immediate resistance is seen at $1,283.00 levels, while support is at $1,225.00 levels respectively.
Trading recommendations:
Remain short, stop at $1,286.00, target $1,190.00 at least.
Good luck!
