Gold Technical Analysis for October 03, 2016.

Technical outlook and chart setups:

Gold has printed yet another low at
$1,312.00/13.00 levels as expected and discussed earlier. The yellow metal is
seen to be trading at $1,316.00/17.00 levels for now, looking to produce a
counter trend rally towards $1,330.00/31.00 levels before resuming lower again.
The wave structure also indicates that the metal has unfolded into 5 waves from
$1,352.00 through $1,313.00 levels and is expected to produce a 3 wave
corrective rally. Please not that fibonacci 0.618 resistance is also passing
through $1,332.00 levels as depicted here and a bearish reaction is expected if
prices manage to reach there. It is recommended to take profits on short
positions now and wait for opportunities to go short at higher levels.
Immediate resistance is now seen at $1,340.00/43.00 levels, while support is at
$1,306.00 levels respectively.

Trading recommendations:

Please book profits on short
positions taken earlier.

Good luck!

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