Technical outlook and chart setups:
Gold seems to have formed a meaningful bottom at $1,122.00 levels last Thursday before pulling back higher again. Please note that the yellow metal is trading at $1,137.00 levels for now after printing intraday highs at $1,142.00 levels. The metal could be preparing to form yet another low or at least test $1,122.00 levels before resuming the trend again. Please note that the Fibonacci 0.786 support of the past rally between $1,046.00 to $1,375.00 levels comes in at $1,116.00 levels. The wave structure reveals that the recent rally from $1,122.00 to $1,142.00 levels looks to be corrective and hence the metal could drop one last time before turning higher. Immediate support is seen at $1,122.00 levels, while resistance is seen at $1,165.00 levels.
Trading recommendations:
Remain flat for now and allow a test of recent lows to initiate long positions.
Good luck!
