Technical outlook and chart setups:
Gold had rallied through $1,358.00 level last week, a relatively less probable move. The metal is seen to be trading at $1,316.00 levels at this moment, drifting sideways since last Friday. The wave structure indicates that Gold might have produced a bottom at $1,200.00 level now, and should be looking to rally further at least one more time before producing a meaningful correction. On the flip side, the metal seems to have reached the beginning of the ending diagonal (earlier drop, July 2014) at $1,358.00/60 levels and could correct the entire rally between $1,046.00 through $1,358.00 levels respectively. It is recommended to remain flat for now and let more clarity unfold before committing further. Immediate support is seen through $1,290.00 levels, while resistance is at $1,358.00 level respectively. Please note that a break below $1,250.00 levels would induce confidence into a medium term bearish setup.
Trading recommendations:
Remain flat for now.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com