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Technical analysis of Gold for May 09, 2016

Technical outlook and chart setups:

Gold has dropped lower today and is trading at $1,280.00/81.00 levels for now. The metal might be supported at these levels and push higher one last time through $1,307.00/10.00 levels before reversing lower. Please note that it is quite possible that the metal may continue dropping from current levels as well and a break below the support trendline here would confirm the same. It is recommended to remain short with risk at $1,308.00 levels or prepare to go short at higher levels. Immediate support is seen at $1,270.00 levels, while resistance is seen through $1,303.00 levels respectively. Bulls would want to push prices through $1,307.00 levels till gold remains around $1,270.00 levels respectively.

Trading recommendations:

Remain short with stop at $1,310.00 or prepare to go short at higher levels.

Good luck!

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