Technical outlook and chart setups:
1. Gold has moved further low, towards $1,310.00 levels. It is possible that the corrective phase has resumed in the metal and it should reach at least the $1,270.00 region soon. Please note that $1,270.00 region is the convergence point of trendline, fibonacci and past resistance turned support as well. Recommendations are to remain short for now, risk remains at $1,335.00.
2. Immediate resistance is at $1,332.00/33.00, while supports are spread through $1,270.00 (fibonacci and past resistance turned support), followed by $1,230/20 and lower respectively.
3. The structure indicates that a final rally towards $1229.00/30.00 is possible before the metal gives in to bears. Fresh short positions can be initiated during the final test and reversal.
Trading recommendations:
Remain short, stop is at $1,335.00, target is at a low of $1,270.00 minimum.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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