Technical outlook and chart setups:
Gold has dropped lower after hitting resistance at $1,235.00 levels on Friday. The yellow metal is seen to be trading at $1,216.00/17.00 levels for now, looking to break to lower towards $1,200.00 levels from here. The metal needs to break below its counter trend line support to accelerate drop towards $1,170.00 and $1,146.00 levels subsequently. It is hence recommended to remain short for now, with risk at $1,235.00/36.00 levels. Immediate interim resistance is seen at $1,235.00 levels while support is seen at $1,200.00 levels respectively. Bears are expected to remain in control till prices stay below $1,235.00 levels from here on.
Trading recommendations:
Remain short for now, stop at $1,235.00/36.00 levels, a target $1,170.00 is at least.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com