Technical outlook and chart setups:
1. Gold is carving out a right shoulder of a potential inverted head and shoulder reversal pattern here, as seen on the daily chart view. The metal has formed an engulfing bullish candlestick signal at the level of $1,268.00 on Friday, thus indicating a possible bullish reversal from current levels. It is recommended to initiate fresh long positions at current levels for a long term bullish reversal possibility.
2. Support is at $1,258.00 (interim), followed by $1,240.00 and lower, while resistance is seen at $1,296.00 (interim), followed by $1,325.00, $1,340.00 and higher up respectively.
3. The structure indicates that Gold could turn bullish from current ($1,268.00) levels, forming and completing an inverted head and shoulder reversal.
Trading recommendations:
One could initiate fresh long positions at current levels, stop at $1,240.00, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
