Technical outlook and chart setups:
Gold seems to have formed a meaningful bottom at $1,156.00 level early this week before pulling back higher. The metal is retracing for now and is seen to be trading at $1,167.00 for now. According to the wave structure and fibonacci ratios, the yellow metal should find support at $1,164.00 level as depicted here. An a-b-c corrective drop would also complete there and the metal should be pushing towards $1,188.00 and $1,206.00 levels respectively. The wave structure reveals that the recent rally from $1,156.00 through $1,176.00 levels looks impulse and is followed by a corrective drop. If this wave structure holds well, we should see the metal rallying higher. A push through $1,230.00 and subsequently $1,250.00 levels would indicate that bulls are poised to stay for long. Immediate support is seen at $1,156.00 levels, while resistance is seen at $1,188.00 levels respectively.
Trading recommendations:
Remain long from $1,167.00 and $1,164.00 levels for now, stop just below $1,156.00 and target $1,188.00/$1.206.00 levels.
Good luck!
