Technical outlook and chart setups:
Gold has indeed dropped lower below $1,330.00 level, taking out stops yesterday. Please note that the yellow metal still looks to be constructive for bulls to regain control, till prices stay above $1,310.00 level, which is the wave's low within the triangle structure. The wave structure continues to indicate that the metal seems to have terminated its wave 4 triangle consolidations at $1,323.00/24.00 levels and is seen to be trading around the same levels at this moment. It is hence recommended to remain long, with risk below $1,310.00 levels. Immediate resistance is seen at $1,3555.00/56.00 levels, while support is seen at $1,310.00 levels. Please note that the metal looks to be into its last leg (wave 5) rally and it is expected to reverse lower from close to $1,380.00/90.00 levels going forward.
Trading recommendations:
Remain long, stop below $1,310.00, targets are at $1,358.00 and $1,390.00
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com