Technical outlook and chart setups:
Gold has almost achieved minimum expectations by hitting highs at $1,335.00 level yesterday. The metal is seen to be trading at $1,333.00 level at the moment, looking to drop lower at least as a retracement. The wave structure indicates that Gold might have completed its counter trend rally yesterday and the metal should resume its drop lower towards fresh lows. This probability would be confirmed once it breaks below $1,320.00 level. Immediate resistance is seen at $1,340.00 level, while support is at $1,320.00 level respectively. It is hence recommended to take profits on long positions now and aggressive traders may initiate short positions with risk at $1,355.00 level. Please note that the metal looks to be into its last leg (wave 5) rally and it is still expected to rally through $1,380.00/90.00 levels going forward, probabilities are turning less though.
Trading recommendations:
Book profits on long positions taken earlier. Aggressive trade setup is to go short, stop is above $1,355.00, a target is open.
Good luck!
