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Technical analysis of Gold for May 06, 2016

Technical outlook and chart setups:

Gold has formed yet another low at $1,270.00 levels yesterday before pulling back higher again. The yellow metal is seen to be trading at $1,278.00 levels at this moment, looking to rally further towards $1,307.00 levels before reversing. On the flip side, a continued drop from current levels and a subsequent break below the trendline support would confirm that a meaningful top is in place and that the metal is ready to produce a meaningful retracement. It is recommended to remain long for now, with risk at $1,250.00 levels. Immediate support is seen at $1,270.00 levels, while resistance is at $1,303.00 levels respectively.

Trading recommendations:

Remain long for now, stop at $1,268.00, target is $1,309.00

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com