Technical outlook and chart setups:
Gold dropped to $1,310.00 levels yesterday before pulling back sharply, as expected and discussed earlier. Please note that the metal might just have begun a countertrend rally towards $1,350.00/60.00 levels going forward. The wave structure also indicates that the drop from $1,375.00 through $1,310.00 levels is an impulse (5 waves), and hence a countertrend rally is most probable to unfold. The metal is seen to be trading around $1,327.00/28.00 levels at this moment, looking to push through at least $1,335.00/40.00 levels, which is also fibonacci 0.382 resistance of an earlier drop, as depicted here. It is hence recommended to remain long (aggressive trade setup) for now with risk below $1,315.00 levels. Immediate support is seen at $1,315.00 levels, while resistance is at $1,334.00 levels respectively.
Trading recommendations:
Short target hit. Turn bullish now, stop at $1,315.00, target $1,335.00/40.00 at least.
Good luck!
