FX.co ★ Gold targeting breakdown towards 1,400.00

Technical outlook and chart setups:

The yellow metal should be targeting lower towards at least 1,400/05 levels as seen here. The rally from 1,300.00 level may be still a correction and a fresh low could be insight. Strong resistance remains at 1,500/20 levels which was weekly support for at least 6 months. It is recommended to either go short if prices reach 1,500/20 levels from here or go long around 1,400/05 levels, if a bullish bounce appears. Aggressive traders can initiate short positions now with a stop around 1,500.00 and a short-term target around 1,400.00. The short positions could be covered up on a bullish bounce only. Support is at 1,400.00 levels, 1,380.00, followed by 1,300.00 and 1,290.00 on the lower side.

Trading recommendations:

Initiate short positions at current levels, stop is at 1,500.00, and target is at 1,400.00 or open.

Good luck!