Technical outlook and chart setups:
Gold has managed to push higher and test recent highs of $1,279.00 before pulling lower again. The metal had push through the levels of $1,283.50 earlier, but dropped lower towards $1,277.00/78.00. As depicted here, the structure reveals that the yellow metal might have completed a diagonal into wave 5, and should be topping out soon. If this scenario holds true, prices should not exceed $1,283.00 instead of a continuing drop lower from here. As an alternative, the yellow metal still could push higher one more time towards $1,310.00 before reversing lower. For now, it is recommended to remain flat and wait for further confirmation before committing a short position. Immediate resistance is seen at $1,307.00, while support is at $1,236.50.
Trading recommendations:
Remain flat now. An aggressive setup would be to remain short with risk above $1,284.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com