Technical outlook and chart setups:
Gold had dropped lower towards $1,306.00 levels last week, before pulling back higher. The yellow metal is seen to be trading at $1,313.00 levels at this moment, looking to form a base here before resuming its rally. Please note that the metal has bounced off the vicinity of fibonacci 0.786 support levels of the recent rally between $1,302.00 through $1,352.00 levels respectively. Furthermore, the back side of its resistance trendline provided necessary support. The wave structure still looks constructive for bulls, till prices remain above $1,302.00 levels going forward. It is hence recommended to remain long with risk at $1,302.00 levels for now. Potential still remains for bulls to take control from here. 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 now, stop at below $1,302.00; target is $1,375.00 at least.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com