Technical outlook and chart setups:
Gold is still seen to be testing the back side of the resistance trend line, which should provide enough support around the level of $1,147.00. Yesterday, an indecision candlestick pattern (doji)was formed, indicating that a reversal could be on the cards. A bullish morning star pattern is seen to be quite encouraging today and fresh long positions can be initiated as well. We recommend to hold long positions with risk below the $1,130.00 level for now. Immediate support is seen at $1,130.00 while resistance is seen at the level of $1,220.00. A push through the $1,220.00/25.00 levels would confirm that a low is in place, however a drop lower below $1,130.00 should be extremely bearish for the yellow metal.
Remain long for now, stop at $1,130.00, target is open.
The material has been provided by InstaForex Company – www.instaforex.com