Technical Analysis of Gold for May 04, 2016
Technical outlook and chart setups:
Gold is seen to be trading lower for the day at $1,280.00/81.00 levels, looking to rally one last time through $1,307.00/10.00 levels before reversing lower. The metal might be into its wave 4 corrective drop as depicted on the chart here, before pushing higher into the wave 5 rally. Also note that $1,307.00 is a major resistance on the weekly chart, being targeted by bulls before producing a meaningful retracement lower. Structurally, the metal might just have formed a bottom or might drop to $1,275.00 levels to form a base. It is recommended to remain flat for now and wait for a bullish reversal to turn long for a short-term rally. Immediate resistance is seen at $1,303.00 levels while support is at $1,275.00 levels respectively.
Remain flat for now, looking to go long on a bullish reversal.