Technical outlook and chart setups:
Gold remains unchanged from yesterday with prices stagnant between $1,255.00/60.00. It seems to have formed an interim higher low at $1,250.00/51.00 as expected after bouncing off from fibonacci 0.382 support at $1,240.00 level earlier. The metal is seen to be trading at $1,255.00 level for now, looking to accelerate higher towards $1,300.00/10.00 levels. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned resistance zone at $1,310.00 levels, which is fibonacci 0.50% of the entire drop between $1,375.00 and $1,240.00 levels as depicted here. Also note that the broken support trend line would act as resistance now around the same levels. It is recommended to remain flat now and look to sell around $1,300.00/10.00 levels again, while aggressive traders should look to go long with risk below $1,240.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support is at $1,240.00 level respectively.
Trading recommendations:
Remain flat for now. Aggressive traders long now with stop at $1,240.00 level, targeting $1,310.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com