Technical outlook and chart setups:
Gold dropped to the initial support level at $1,100.00 yesterday and is bouncing off at the moment. The metal has produces a bullish tweezer bottom candlestick pattern on the H4 chart trading around $1,108.00 now. Please note that the metal has reached its fibonacci 0.618 support levels (of the rally between $1,075.00 to $1,170.00 levels) around $1,100.00. Bullish reversal from here could easily rally through $1,230.00 . It is hence recommended to initiate long positions now, with risk at $1,075.00. Immediate support is seen at $1,090.00 followed by $1,075.00/80.00 and lower while resistance is seen at $1,170.00 followed by $1,200.00 and higher respectively.
Initiate long positions now with stop at $1,075.00, a target is open.
The material has been provided by InstaForex Company – www.instaforex.com