Technical Analysis of Gold for May 23, 2016
Technical outlook and chart setups:
Gold is seen to be trading at $1,252.00/53.00 levels, testing its trend line support again. The metal seems to be looking to drop lower around $1,242.00 levels and complete its correction, before turning bullish again. Please note that structurally, the metal is looking to form an up gartley and should find support at $1,242.00 or $1,226.00 levels going forward. Only a break below $1,226.00 levels should be encouraging to bears and might change the intermediary trend to lower. It is hence recommended to remain long for now with risk at $1,220.00 levels, and also look to add around $1,226.00 if prices turn bullish from there. Immediate support is seen at $1,237.00 levels, while resistance is seen at $1,280.00 levels respectively.
Remain long for now, stop at $1,220.00, a target is open.