Technical outlook and chart setups:
Gold has dropped lower to the levels of $1,210.00/13.00 as expected earlier. The metal needs to correct further before resuming rally and a break below $1,278.00 could confirm the same. On the flip side, a push above the level of $1,225.00 would trigger further run up through $1,250.00 and higher. It is recommended to remain short now and wait for further correction lower before reversing. Immediate support is seen around $1,194.00/95.00, followed by $1,178.00 and lower while resistance is seen at $1,240.00/50.00 followed by $1,285.00 and higher respectively.
Trading recommendations:
Remain short for now, stop at $1,231.00, target at $1,270.00
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
