Gold had dropped lower towards $1,245.00 levels on Friday before pulling back. The metal is seen to be trading at $1,257.00 levels for now and is likely to rally from here. A push above $1,261.00 levels should accelerate the movement towards $1,280.00 and above. 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 not depicted here. Also note that the broken support trend line will act as resistance 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 remain long with risk below $1,240.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support lies at $1,240.00 levels.
Trading recommendations:
Remain flat for now. Aggressive traders are recommended to keep long positions now with stop at $1,240.00 levels, 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 levels on Friday before pulling back. The metal is seen to be trading
at $1,257.00 levels for now and is likely to rally from here. A push
above $1,261.00 levels should accelerate the movement towards $1,280.00 and above. 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 not
depicted here. Also note that the broken support trend line will act as
resistance 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
remain long with risk below $1,240.00. Immediate resistance is now seen at
$1,305.00/10.00 levels, while support lies at $1,240.00 levels.
Trading recommendations:
Remain flat for now. Aggressive
traders are recommended to keep long positions now with stop at $1,240.00 levels, targeting $1,310.00.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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