Technical outlook and chart setups:
Gold is seen to be trading around
$1,314.00/15.00 levels at this moment, looking to form a meaningful bottom
soon. The metal has made overnight lows at $1,310.00 levels as expected and
discussed yesterday. It is possible that the metal might have already completed
5 waves down from $1,375.00 levels producing an impulse. Please note that the downside remains limited from here and bears might just want to take out $1,305.00
before pulling back sharply. It is hence recommended to book profits on short
positions taken earlier and prepare to initiate long positions to take
advantage of a potential countertrend rally. Immediate support is seen at
$1,305.00 levels, while resistance is at $1,340.00 levels respectively. The
metal should be looking to rally, going forward.
Trading recommendations:
Book profits on short positions
taken earlier. Prepare to go long around $1,305.00 levels.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
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