Gold Technical Analysis for August 25, 2016.

Technical outlook and chart setups:

Gold has indeed dropped lower
below $1,330.00 level, taking out stops yesterday. Please note that the yellow
metal still looks to be constructive for bulls to regain control, till prices
stay above $1,310.00 level, which is the wave’s low within the triangle
structure. The wave structure continues to indicate that the metal seems to
have terminated its wave 4 triangle consolidations at $1,323.00/24.00 levels
and is seen to be trading around the same levels at this moment. It is hence
recommended to remain long, with risk below $1,310.00 levels. Immediate
resistance is seen at $1,3555.00/56.00 levels, while support is seen at $1,310.00
levels. Please note that the metal looks to be into its last leg (wave 5) rally
and it is expected to reverse lower from close to $1,380.00/90.00 levels going
forward.

Trading recommendations:

Remain long, stop below $1,310.00,
targets are at $1,358.00 and $1,390.00

Good luck!

The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com