Technical outlook and chart setups:
Gold has dropped down to $1,220.00/21.00 levels as it was expected yesterday. The metal is bouncing off higher, forming a morning star candlestick pattern on the 4H chart as seen here, indicating a potential reversal. Also please note that Gold has held fibonacci 0.618 support at $1,220.00 levels as expected. It is recommended to remain long and add fresh long positions now, with risk at $1,170.00 levels. Immediate support is seen at $1,120.00 (interim), followed by $1,205.00, $1,170.00 and lower while resistance is seen at $1,245.00 (interim), followed by $1,285.00, $1,307.00 and higher respectively.
Trading recommendations:
Remain long, stop at $1,170.00, the target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
