FX.co ★ Gold tests backside of trend line. 1,250/45 in focus

Technical outlook and chart setups:

The metal is clearly moving as it was expected. Yesterday the backside test produced a pullback lower and it is recommended to hold short positions initiated. Resistance is at 1,339/40 levels followed by 1,350 on the higher side; while support is at 1,270.00, and 1,210.00 levels on the lower side. As depicted here, the convergence is seen around 1,240/50 levels, for the bulls to resume rally. Gold might be in a corrective mode at the moment which could be spanning into 3 waves. Looking lower intermediary till 1,250.00 level then high.

Trading recommendations:

Remain short, stop is at 1,351.50, and target is at 1,250.00.

Good luck!