Gold pulls back to 1,663.00. Convergence provides long opportunities
Technical outlook and chart analysis:
As depicted here, the yellow metal has retraced to 1,663/65, which was defined as a support region earlier. Furthermore, one should note the following facts mentioned below:
1. Prices have broken the sloping downtrend line shown here on the particular timeframe and possibly retracing to back test.
2. 1,663/65 region is defined by the past resistance turned support and a combination of Fibonacci support convergence.
Keeping the above mentioned facts in mind, it is recommended to go fresh long at current price action for further upside extensions as shown here.
Go fresh long now (1,667/68), stop is at 1,630.00, target is open (book partial profits at 1,720.00).
The material has been provided by Instaforex Company – http://www.instaforex.com/