Technical outlook and chart setups:
Gold has tested its upper boundary at $1,265.00 levels today and a consistent break higher will confirm that the metal is heading towards $1,305.00 levels. It is seen to be trading at $1,263.00 levels for now and should be looking to correct lower before resuming rally. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned resistance zone at $1,304.00/10.00 levels, which is Fibonacci 0.50% of the entire drop between $1,375.00 and $1,240.00 levels not shown here. Also note that the broken support trend line will act as resistance around the same levels. 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 $1,240.00. Immediate resistance is seen at $1,305.00/10.00 levels, while support lies at $1,240.00 levels.
Trading recommendations:
Remain flat for now. Aggressive traders are recommended to remain long now with stop at $1,240.00 levels, targeting $1,310.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com