Technical outlook and chart setups:
Gold had dropped to $1,163.00 levels last week, taking our stops out at $1,170.00 levels. The metal has hit the back side of resistance trend line which should now act as support, as depicted here on the daily chart view. Longs are still preferred against $1,130.00 lows from current price at $1,173.00 levels. Please also note that the drop had stalled at fibonacci 0.786 support of the entire rally between $1,130.00 and $1,309.00 levels earlier. A bullish bounce at current levels could would keep the uptrend in place and the structure intact. Support is seen at $1,146.00 followed by $1,130.00 while resistance is seen at $1,220.00, followed by $1,280.00 and higher respectively.
Trading recommendations:
Initiate fresh long positions at $1,173.00 levels, stop at $1,130.00, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
