Technical outlook and chart setups:
Gold counter trend rally is awaited and should materialize today. The yellow metal has bounced off $1,250.00 level as expected which is fibonacci 0.382 support of the entire rally between $1.046.00 and $1,375.00 levels respectively. The metal seems to have now completed its first leg A within the A-B-C corrective structure. The metal is seen to be trading at $1,257.00 level for now, looking to rally through $1,290.00 levels at least before it could find resistance. The wave structure indicates that the metal is expected hit the past support turned resistance zone at $1,310.00 levels, which is fibonacci 0.50% of the entire drop as depicted here. 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 level respectively.
Trading recommendations:
Remain flat for now. Aggressive traders long now with stop at $1,240.00 level, targeting $1,310.00.
Good luck!
