Gold ready push higher above 1,600.00. Remain long
Technical outlook and chart setups:
As seen on the 4H chart view here, yesterday the yellow metal retraced lower up to 1,577/78 levels before bouncing off sharply. It can be seen that an engulfing bullish signal has been produced on the test of past resistance zone, which is support now. It is most likely that a move from here should be a rally towards 1,660 level as shown here. Support levels are defined by 1,575/70, 1,565/60 and 1,555.00 on the lower side. Resistance levels are defined by 1,650/60 (shown as horizontal blue line), 1,680/85, and higher. The expected ABCD where AB is between 1,555.00 and 1,620.00 should be completed now at 1,660.00 level at least. Therefore, it is strongly recommended to hold on long positions for now.
No change. Stay long. Stop is at 1,550.00 (to be revised soon), and target is at least at 1,660.00.
The material has been provided by InstaForex Company – www.instaforex.com