Technical outlook and chart setups:
Gold has again dropped into the support region of $1,170.00 as seen on the daily chart depicted here. Please note that a counter trend line (support) is being tested at the moment. Also note that a fibonacci convergence is seen around $1,166.00/70.00 price levels. A bullish bounce here is expected, and should be extremely encouraging for bulls. Immediate support is seen around $1,166.00 (fibonacci), followed by $1,143.00, $1,130.00 and lower, while resistance is seen at $1,210.00(interim), followed by $1,235.00, $1,255.00 and higher up respectively. It is still recommended to hold long positions and watch for a reaction at the trend line test.
Trading recommendations:
Remain long, stop below $1,250, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
