Technical outlook and chart setups:
Gold finally broke above its resistance boundary at $1,265.00 levels and printed $1,273.00/74.00 highs yesterday. Please note that $1,265.00 will act as support now and help the metal to bounce back towards higher levels. Gold is seen to be trading at $1,272.00 levels for now and should be looking to correct lower before resuming rally. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned resistance zone at $1,304.00/10.00 levels, which is Fibonacci 0.618% of the entire drop between $1,352.00 and $1,240.00 levels as shown here. It is recommended to remain flat now and look to sell around $1,300.00/10.00 levels again, while aggressive traders should remain long with risk below $1,240.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support lies at $1,265.00 levels.
Trading recommendations:
Remain flat for now. Aggressive traders are recommended to remain long now with stop at $1,240.00 levels, targeting $1,310.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com