Technical Analysis of Gold for June 02, 2016
Technical outlook and chart setups:
Gold is seen to be trading at $1,214.00/15.00 levels at this moment. It may be looking to print one last low around $1,197.00 levels before turning bullish. The metal is looking to produce a countertrend rally after forming a base around $1,197.00 levels. On the flip side, the metal may push higher towards $1,235.00 levels before dropping lower. Structurally the metal needs to retrace the entire rally from $1,046.00 through $1,303.00 levels, hence it is recommended to sell on rallies through $1,235.00 and $1,250.00/60.00 levels from here. Immediate support is seen at $1,199.00 levels (interim), while resistance is seen through $1,240.00/50.00 levels respectively.
Aggressive: Long now, stop at $1,190.00, target $1,250.00/60.00.
Conservative: Flat now. Sell around $1,250.00/60.00 levels, stop above $1,303.00, target is open.