Technical Analysis of Gold for May 10, 2016
Technical outlook and chart setups:
Gold had hit $1,259.00 levels yesterday before pulling back. The metal seems to be trading at $1,266.00/67.00 levels at this moment and maybe looking to rally towards new highs or at least $1,280.00/85.00 levels, in case of a retracement. Please note that the metal may still be considered in a corrective mode, and find support around $1,256.00 levels which is fibonacci 0.618 support of the rally between $1,227.00 and $1,303.00 levels respectively. It is recommended to book profits on short positions taken earlier and remain flat for now waiting to see a reaction at $1,256.00 levels. Immediate support is seen at $1,256.00 levels, while resistance is at $1,295.00 levels respectively.
Remain flat for now. Watching for a reaction at $1,256.00 levels.