Gold had dropped lower towards $1,245.00 level on Friday before pulling back. The metal is seen to be trading at $1,254.00 level for now and should be looking to rally from here. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned resistance zone at $1,304.00/10 levels, which is fibonacci 0.50% of the entire drop between $1,375.00 and $1,240.00 levels as depicted here. Also note that the broken support trend line would act as resistance now around the same levels. It is recommended to remain flat now and look to sell around $1,300.00/10.00 levels again, while aggressive traders should look to go/remain long with risk below $1,240.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support is at $1,240.00 level respectively.
Trading recommendations:
Remain flat for now. Aggressive traders remain 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
Technical outlook and chart setups:
Gold had dropped lower towards
$1,245.00 level on Friday before pulling back. The metal is seen to be trading
at $1,254.00 level for now and should be looking to rally from here. The wave
structure also indicates that the counter trend rally is expected to terminate
around the past support turned resistance zone at $1,304.00/10 levels, which is
fibonacci 0.50% of the entire drop between $1,375.00 and $1,240.00 levels as
depicted here. Also note that the broken support trend line would act as
resistance now around the same levels. It is recommended to remain flat now and
look to sell around $1,300.00/10.00 levels again, while aggressive traders
should look to go/remain long with risk below $1,240.00. Immediate resistance
is now seen at $1,305.00/10.00 levels, while support is at $1,240.00 level respectively.
Trading recommendations:
Remain flat for now. Aggressive
traders remain 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
Related Posts: