Technical analysis of Gold for February 03, 2016 Market Analysis Review

Technical outlook and chart setups:

Gold was trading at $1,128.00/29.00 levels at the moment of publication, facing resistance around $1,130.00/31.00 levels. The metal is also forming a pennant at current levels in 4H chart which is not seen here. Importantly, a major resistance is seen at $1,136.00 in the form of Fibonacci 0.618 ratio. Besides, the resistance line is seen passing around the same region. Therefore, it is recommended to remain flat and watch for selling opportunities at higher levels or remain short with risk at $1,132.50 for now. Immediate support is seen at $1,127.50 while resistance lies at $1,131.00/50.

Trading recommendations:

Remain short with stop at $1,132.50 and plan to sell at higher levels if prices reach them.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com

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