Technical analysis of Gold for February 04, 2016 Market Analysis Review

Technical outlook and chart setups:

Yesterday, gold rallied to measured extensions towards towards the levels of $1,136.00/40.00. The metal hit the level of $1,145.00 before pulling back lower again. Please note that the yellow metal is hitting resistance around Fibonacci 0.618 retracement of a drop between the levels of $1,191.00 and $1,046.00. Also, the trend-line resistance is being tested at the moment around $1,142.00/45.00, and a bearish response is expected. It is now recommended to initiate short positions with risk around $1,148.50. Immediate resistance is seen at $1,145.00 (interim), while support is seen at $1,137.00.

Trading recommendations:

Stay short now with stop at $1,148.50, a target is open.

Good luck!

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