Technical outlook and chart setups:
Gold further gave in to bears and hit lows at $1,313.00 levels before pulling back higher. The yellow metal is seen to be trading at $1,324.00 levels at this moment, looking to retrace lower and then resume rally. Please note that the metal has bounced off from fibonacci 0.786 support levels of the recent rally between $1,302.00 through $1,352.00 levels respectively. Furthermore, also note that it found support at the back side of resistance trend line as well. The wave structure still looks constructive for bulls, till prices remain above $1,302.00 levels going forward. It is hence recommended to remain long with risk at $1,302.00 levels for now. Potential still remains for bulls to take control from here. Please note that the metal looks to be into its last leg (wave 5) rally and it is expected to reverse lower from close to $1,380.00/90.00 levels going forward.
Trading recommendations:
Remain long now, stop at below $1,302.00; target is $1,375.00 at least.
Good luck!
