Technical outlook and chart setups:
Gold had hit yet another intraday high at $1,367.00/68.00 levels yesterday and it should be looking to pullback/reverse from here, but it needs to break below $1,360.00 levels to confirm. Please note that the metal is trading around $1,364.00/65.00 levels at this moment, having carved out a lower high at $1,367.00. Also note that it has reversed from the fibonacci 0.786 levels of the drop between $1,375.00 through $1,310.00 levels earlier. The wave structure also indicates that the drop from $1,375.00 through $1,310.00 levels is impulse (5 waves) and a 3 wave counter trend rally is also complete. Bears are expected to remain in control from current levels going forward and only a break above $1,375.00 levels would delay matters. It is hence recommended to remain short for now. Immediate support is seen at $1,347.00 levels, while resistance is at $1,375.00 levels respectively.
Trading recommendations:
Remain short now, stop above $1,375.00, target is open.
Good luck!
