- The yellow metal rose to its highest levels in almost 12 weeks on Tuesday as rout in Chinese equities overnight hurt risk appetite, pushing investors towards alternative assets.
- The commodity dipped for a short while in the European session, however after European stocks steadied and oil reversed course from daily lows the yellow metal rebounded back into positive territory.
- Any downside is expected to be limited around 1112 levels as the support level located at 1110 is likely to hold the bears from falling further below and bring a rebound back towards higher levels.
- To the upside, the strong resistance can be seen 1116, a break above this level would expose the commodity towards 1120 levels.
- To the downside immediate support can be seen at 1110, a break below at this level will open the door towards 1103 levels.Recommendation: Go long around 1110, targets around 1120/1125, SL 1095Support levels: S1-1110, S2-1103 S3-1098 Resistance levels: R1-1116, R2-1120, R3-1125
The material has been provided by InstaForex Company – www.instaforex.com