Technical outlook and chart setups:
Gold is looking up to rally towards fresh highs at $1,400.00 levels in the coming sessions. The metal has finally bottomed out after forming lows at $1,190.00 levels twice in a row, producing a tweezer bottom and following up well with a bullish candle in formation right now. Trading at $1,209.00, the metal is seeking to clear above $1,225.00 as initial target, that could set it up to rally further. Also, the entire structure is looking like an inverted head and shoulder reversal, with potential right shoulder being carved out at $1,190.00 levels. It is strongly recommended to hold long positions and look to add on dips, with risk at $1,170.00 levels. Immediate support is seen at $1,190.00 levels (interim), followed by $1,170.00, $1,030.00 and lower while resistance is seen at $1,225/35.00 levels (interim), followed by $1,280.00, $1,307.00 and higher respectively.
Remain long, stop at $1,170.00, the target is open.
The material has been provided by InstaForex Company – www.instaforex.com