Technical outlook and chart setups:
Gold drops to test intermediary lows at $1,250.00 levels as seen here. The metal still remains in control of bulls till prices remain above $1,250.00. It is recommended to remain long and also look to add further positions at current levels. A bullish bounce is expected from current levels, which could push the yellow metal through fresh swing highs and subsequently towards $1,340.00. Please note that the yellow metal had bounced off the fibonacci 0.382 support at $1,250.00 levels earlier and the current drop is still considered as a test. Bulls are poised to rally.
Trading recommendations:
Remain long, stop at $1,245.00, the target is $1,340.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
