Technical Analysis of Gold for May 18, 2016
Technical outlook and chart setups:
Gold is seen to be setting up for a continued drop towards $1,237.00 and lower levels. The yellow metal is trading at $1,272.00 levels at the moment, and might test $1,282.00 levels again before finally reversing lower. Please note that Gold remains a candidate to sell on rallies till prices stay below $1,303.00 levels. It is hence recommended to remain short and also look to add further around $1,281.00 levels with risk at $1,295.00. Immediate resistance is seen at $1,295.00 levels, while support is at $1,256.00 levels respectively. Please note that a break below the support trend line would accelerate further downside.
Remain short with stop at $1,295.00 levels.