Technical outlook and chart setups:
Gold finally reversed as expected and broke lower below $1,360.00 level, hitting $1,349.00/50.00 levels right now. The metal is now expected to retrace higher towards $1,360.00/63.00 levels again before reversing again. It looks like the metal has carved out a meaningful top at $1,367.00 level and should be setting up for a deeper correction. Besides, note that it has reversed from the fibonacci 0.786 level of the drop between $1,375.00 through $1,310.00 level earlier. The wave structure also indicates that the drop from $1,375.00 through $1,310.00 level is impulse (5 waves), and a 3-wave counter trend rally is also complete. Bears are expected to remain in control from the 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 $1,347.00 level, while resistance is at $1,375.00 level respectively.
Trading recommendations:
Remain short now, stop above $1,375.00, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com