Technical outlook and chart setups:
Gold had rallied through
$1,358.00 level last week, a relatively less probable move. The metal is seen
to be trading at $1,316.00 levels at this moment, drifting sideways since last
Friday. The wave structure indicates that Gold might have produced a bottom at
$1,200.00 level now, and should be looking to rally further at least one more
time before producing a meaningful correction. On the flip side, the metal
seems to have reached the beginning of the ending diagonal (earlier drop, July
2014) at $1,358.00/60 levels and could correct the entire rally between
$1,046.00 through $1,358.00 levels respectively. It is recommended to remain
flat for now and let more clarity unfold before committing further. Immediate support
is seen through $1,290.00 levels, while resistance is at $1,358.00 level
respectively. Please note that a break below $1,250.00 levels would induce
confidence into a medium term bearish setup.
Trading recommendations:
Remain flat for now.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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