Technical outlook and chart setups:
Gold has hit yet another low at $1,307.00 just a few hours back before pulling higher. The yellow metal is seen to be trading at $1,311.00/12.00 levels for now, looking to produce a counter trend rally towards $1,330.00/31.00 levels before resuming lower again. The wave structure also indicates that the metal has unfolded into 5 waves from $1,343.00 through $1,307.00 level and is expected to produce a 3-wave corrective rally. Please note that fibonacci 0.618 resistance is also passing through $1,332.00 level as depicted here and a bearish reaction is expected if prices manage to reach there. It is recommended to take profits on short positions now and wait for opportunities to go short at higher levels. Immediate resistance is now seen at $1,340.00/43.00 levels, while support is at $1,306.00 levels respectively.
Trading recommendations:
Please book profits on short positions taken earlier. Aggressive trade long now, with stop at $1,302.00 and a target at $1,332.00
Good luck!
