Technical outlook and chart setups:
Gold had swung both sides, $1,261.00 and $1,271.00 levels yesterday, hinting a flat wave 4 correction. The metal is trading at $1,265.00 level for now and should be looking to push higher towards $1,280.00/1300.00 levels from here. Please note that the metal should push through the past support turned resistance zone around $1,304.00 level as depicted here. Please note that the metal should push through the past support turned into resistance around $1,304.00 level as depicted here. The wave structure also indicates that the counter trend rally that began from $1,241.00 level is expected to terminate around $1,304.00/10.00 levels. Please note that prices might have terminated a flat a-b-c correction at $1,260.00 lows yesterday. It is recommended to remain flat now and look to sell around $1,300.00/10.00 levels again, while aggressive traders should remain long with risk below $1,250.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support is at $1,260.00 level respectively.
Trading recommendations:
Aggressive traders remain long now with stop at $1,250.00 level, targeting $1,310.00. Conservative trade setup is to go short at higher levels.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com