Technical outlook and chart setups:
Gold finally produced an impressive rally last Friday, pushing prices all the way through $1,353.00 levels as discussed and expected earlier. Pay attention to the resistance line passing through $1,355.00 levels at this moment. The metal is seen to be trading lower at $1,347.00/48.00 levels at this moment and might have either formed a meaningful top or is expected to form a top at $1,355.00 levels. The wave structure indicates that the metal seems to have formed intermediary highs and may push lower from here at least in a corrective manner. On the flip side, a rise above trend line resistance would confirm further upside. Hence, it is recommended to book profits on long positions taken earlier and look to initiate shorts. Immediate resistance is seen at $1,358.00 levels, while support lies at $1,320.00 levels. Please note that the metal seems to be into its last leg rally (wave 5) and it is expected to reverse lower from near $1,380.00/90.00 levels going forward.
Trading recommendations:
Book profits on long positions taken earlier. Looking to go short at higher levels.
Good luck!
