Technical outlook and chart setups:
Gold has reacted with a huge bearish reversal as we expected yesterday. The metal is seen to be trading/drifting sideways between $1,276.00 and $1,282.00 levels respectively and should be looking to print one more low before producing a meaningful retracement higher. By all probabilities, the metal should remain below $1,315.00 levels at least for a short term. Looking at the wave counts, the metal might drop lower towards $1,242.00 levels, forming wave 2 (within wave 3 higher); or drop below $1,200.00 levels completing an extended flat A-B-C corrective drop as depicted here on charts. Otherwise, it is recommended to remain short from yesterday (no positions to be added at current levels), with risk above $1,320.00 levels. Immediate resistance is seen at $1,315.00 levels, while support is at $1,235.00/40.00 levels respectively. Short term rallies should remain capped below $1,315.00 levels from here on.
Trading recommendations:
Remain short from yesterday, stop is at $1,320.00, target is at least $1.240.00
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com