Technical outlook and chart setups:
Gold finally reversed as expected on last Friday and has now hit lows at $1,329.00 levels. The metal is now expected to retrace higher towards $1,350.00 levels again before reversing lower. It looks like the metal has carved out a meaningful top at $1,367.00 levels and should be setting up for a deeper correction. The wave structure indicates that the metal might be drifting sideways in a triangle formation as depicted on the 4H chart here. The metal might produce a rally towards $1,350.00 levels before breaking below the triangle consolidation. Bears are expected to remain in control from current levels going forward and only a break above $1,375.00 levels would delay matters. It is hence recommended to remain short for now. Immediate support is seen at $1,327.00 levels, while resistance is at $1,366.00 levels respectively.
Trading recommendations:
Remain short now; one can take partial profits here. Stop above $1,375.00, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com