Gold Technical Analysis for October 07, 2016.

Technical outlook and chart setups:

Gold counter trend rally is
awaited and should materialize today. The yellow metal has bounced off
$1,250.00 level as expected which is fibonacci 0.382 support of the entire
rally between $1.046.00 and $1,375.00 levels respectively. The metal seems to
have now completed its first leg A within the A-B-C corrective structure. The
metal is seen to be trading at $1,257.00 level for now, looking to rally
through $1,290.00 levels at least before it could find resistance. The wave
structure indicates that the metal is expected hit the past support turned
resistance zone at $1,310.00 levels, which is fibonacci 0.50% of the entire
drop as depicted here. It is recommended to remain flat now and look to sell
around $1,290.00/92.00 levels again. Immediate resistance is now seen at $1,305.00/10.00
levels, while support is at $1,250.00 level respectively.

Trading recommendations:

Remain flat for now. Aggressive
traders long now with stop at $1,240.00 level, targeting $1,310.00.

Good luck!

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