Technical outlook and chart setups:
Gold resumed its retreat lower after hitting highs at $1,262.00/63.00 levels yesterday. The metal is trading at day's lows at $1,243.00/44.00 levels and is expected to continue lower from here. Please note that the metal reversed from its Fibonacci 0.618 resistance levels to drop between $1,283.00 and $1,207.00 levels respectively. Furthermore, a bearish evening star candlestick pattern is also being produced on the daily chart view, indicating further downside. It is hence recommended to remain short, with a risk at $1,270.00 levels for now. Immediate support is seen at $1,207.00 levels, while resistance is at $1,283.00 levels respectively.
Trading recommendations:
Remain short now, stop at $1,270.00, target is $1,190 and $1,160.00.
Good luck!
