FX.co ★ Gold Bounces off Convergance around 1630.00. Trend is Intact.

Technical Outlook and Chart Setups:

As depicted here, Fridays' candle is a hammer indicating a reversal ahead. The yellow metal bounced back sharply from the 1629/30 levels producing strong buy signals on the smaller timeframes. Furthermore, the 1625/30 level is the Fibonacci convergance of the following 2 swings:

1. The 0.618 Fibonacci retracement of rally from 1520/30 to 1790/95.

2. The 1.271 Fibonacci extension of the downswing from 1790/95 to 1672.00.

It is recommended to buy intraday dips towards the 1640.00 level today.

Looking higher from here on.

Trade Recommendation:

Hold on to long positions taken earlier. Buy around 1640 level today/tomorrow. Stop at 1610/20. Target Open.

Good Luck!