Technical outlook and chart setups:
Gold continues to consolidatie within the triangle structure of dropping resistance and constant support for now. The metal is trading lower for the day at $1,283.50 levels at this moment, looking to test its support area at $1,275.00 levels again. The wave structure indicates that higher probability remains for a break below $1,275.00 levels and push through the $1,245.00 level at least before turning bullish again. Please note that a break below $1,245.00 levels will confirm that the metal is heading lower towards $1,200.00 and subsequently towards $1,140.00/50.00 levels. It is hence recommended to remain short for now, with risk above $1,315.00 levels. Immediate resistance is seen at $1,315.00 levels, while support lies at $1,275.00 levels. Bears are expected to remain in control in the short term.
Trading recommendations:
Remain short now; place stop at $1,320.00 levels, targeting the $1,245.00 level at least.
Good luck!
