Gold Facing Resistance Around 1,730.00. Aggressive Traders Should Look To Go Short
Technical Outlook and Chart Setups:
For the first time, after nearly 8 weeks, a daily chart view is presented here; both possibilities remain at the moment. Please note the following facts below, to be prepared for the next big move.
1. The entire rally from 1,540/50 to 1,790 levels could be the large upswing here. Possible retracement level could be 1,630.00 which is the 0.5 Fibonacci support and it is also re-enforced by the past resistance turned support, as depicted.
2. The trend line support which is at 1,600/10 levels at the moment and increasing gradually can also be found reaching 1,630 level soon.
3. 1,700/05 remain the decisive levels for the downside possibility to materialize.
4. Furthermore, the recent rally from 1,672.00 level seems to be stalling at the 0.618 resistance at 1,750.00 level. Keeping all these facts in mind we can conclude the following trade strategy:
1. Buy on dips at the moment. Stop is at 1,700. Reverse trade on a break of 1,700 with downside target of 1,630.
2. Aggressive traders can sell intraday rallies through 1,730/35 levels. Stop is at 1,760.00. Target is at 1,630. Reverse trade above 1,760.
The material has been provided by Instaforex Company – instaforex.com