Technical Analysis of Gold for May 11, 2016
Technical outlook and chart setups:
Gold is seen to be trading at $1,277.00 levels at this moment, after having bounced off a major support at $1,256.00 levels yesterday. The wave which began from $1,256.00 levels seems to be loosing steam now, and the metal is preparing for a pullback/drop lower from current levels. It is expected to correct lower at least up to $1,262.00/63.00 levels. The structure is looking encouraging for bulls for the moment but $1,256.00 lows should hold for bulls to remain in control. It is recommended to remain book profits if long positions were taken yesterday and remain flat for now. Watch out for a bullish reaction at $1,263.00 levels to go long again. Immediate support is now at $1,256.00 levels (intermediary), while resistance is seen at $1,295.00 levels respectively.
Please book profits on long positions if taken yesterday and remain flat for now. Look to go long again at $1,263.00 levels on a bullish bounce.