Technical outlook and chart setups:
Gold finally broke below $1,302.00 level yesterday as expected earlier but it did not produce the counter trend rally towards $1,330.00 levels!! The metal broke out of the triangle structure and rushed through $1,370.00 levels before pulling back. The metal is seen to be trading at $1,274.00/75.00 levels for now, looking to rally through $1,390.00 before finding resistance. The wave structure indicates that the metal is expected to drop lower at least through $1,250.00 level before it produces a meaningful retracement. Please note that the metal is setting up for a deeper correction lower before the rally resumes. It is recommended to remain flat now and look to sell around $1,390.00/92.00 levels again. Immediate resistance is now seen at $1,305.00/10.00 levels, while support is at $1,250.00 levels respectively.
Trading recommendations:
Remain flat for now. Look to short at $1,390.00/92.00 levels, stop above $1,310.00 levels, target $1,250.00
Good luck!
