Gold continues to drift sideways for now, confined within the boundaries of support and resistance. The metal is seen to be trading around $1,330.00/31 levels at this moment, looking to drop lower towards $1,310.00/07.00 levels. Please note that the yellow metal seems to have terminated its last leg within the triangle consolidation at $1,338.00 levels overnight (seen here as a spike). If the above wave count holds to be true, we can see gold prices dropping below $1,320.00 levels very soon and completing an impulse wave (5 waves from $1,375.00 levels). The metal is then expected to produce a countertrend rally, giving opportunities to go short again. It is hence recommended to remain short for now, with risk above $1,347.00 levels. Immediate support is seen at $1,320.00 levels, while resistance is at $1,345.00 levels. The metal has already drifted lower towards $1,329.00 levels now and should drop towards the channel support line.
Trading recommendations:
Remain short for now, stop above $1,347.00, and target $1,310.00/05.00.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Technical outlook and chart setups:
Gold continues to drift sideways
for now, confined within the boundaries of support and resistance. The metal is
seen to be trading around $1,330.00/31 levels at this moment, looking to drop
lower towards $1,310.00/07.00 levels. Please note that the yellow metal seems
to have terminated its last leg within the triangle consolidation at $1,338.00
levels overnight (seen here as a spike). If the above wave count holds to be
true, we can see gold prices dropping below $1,320.00 levels very soon and
completing an impulse wave (5 waves from $1,375.00 levels). The metal is then
expected to produce a countertrend rally, giving opportunities to go short
again. It is hence recommended to remain short for now, with risk above
$1,347.00 levels. Immediate support is seen at $1,320.00 levels,
while resistance is at $1,345.00 levels. The metal has already
drifted lower towards $1,329.00 levels now and should drop towards the channel
support line.
Trading recommendations:
Remain short for now, stop above
$1,347.00, and target $1,310.00/05.00.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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