Technical outlook and chart setups:
Gold seems to have made an interim bottom at $1,261.00 level last week and bulls should be looking to push higher this week. The metal is trading at $1,264.00/65.00 levels for now and should be looking to push higher towards $1,280.00/90.00 levels from here. Please note that the metal is bouncing off from past resistance which turned into support as depicted here. The wave structure also indicates that the counter trend rally that began from $1,241.00 level is expected to terminate around $1,304.00/10.00 levels, which is not shown since a shorter time frame is presented. Please note that prices have bounced off from the fibonacci 0.50% support as discussed earlier. 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 is at $1,260.00 level respectively.
Trading recommendations:
Aggressive traders remain long now with stop at $1,240.00 level, targeting $1,310.00. Conservative trade setup is to go short at higher levels.
Good luck!
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