Technical outlook and chart setups:
Gold finally gives in to bearish break out as expected and discussed earlier. The metal has broken lower and has made fresh intraday lows at $1,324.00/25.00 levels as depicted here. Please also note that the wave structure still indicates for a continued push lower towards $1,320.00 levels at least. The metal had reversed from $1,339.00 levels as discussed yesterday and hence probability turns higher for bears to remain in control going forward. It is recommended to take partial profits on short positions now and wait for opportunities to go short again on intraday rallies. Immediate resistance is now seen at $1,340.00/43.00 levels, while support is at $1,320.00 levels respectively. The metal is expected to print one more low around $1,320.00 levels before producing a counter trend rally.
Trading recommendations:
Please book partial profits on short positions taken earlier. Stop at $1,355.00, target is open.
Good luck!
