Technical outlook and chart setups:
Gold had dipped lower into the levels of $1,190.00 (this would still be considered as a test of the previous lows) yesterday before bouncing back sharply. The metal has produced an engulfing bullish candlestick pattern as seen on the H4 chart view here. Please, note that the structural uptrend remains intact until prices stay above the levels of $1,170.00. Also, a break above $1,225.00 would confirm that the metal has bottomed out and resumed the uptrend. Immediate resistance is seen at the levels of $1,223.00 followed by $1,235.00, $1,245.00 and higher, while support is seen at the levels of $1,170.00 followed by $1,030.00 and lower, respectively.
Trading recommendations:
Remain long and add further now, stop at $1,170.00, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
