Technical outlook and chart setups:
Gold counter trend rally is awaited and should materialize by tomorrow. Please watch out for interim support at $1,250.00 levels for a bounce. The metal broke out of the triangle structure and rushed through $1,270.00 level before pulling back. Furthermore, it has printed fresh lows at $1,262.00 level now and should bottom around $1,250.00 level as A of the corrective drop A-B-C. The metal is seen to be trading at $1,267.00 level for now, looking to rally through $1,290.00 level 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 $1,290.00/92.00 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 $1,290.00/92.00 levels, stop above $1,310.00 levels, target $1,250.00
Good luck!
