FX.co ★ Gold rallies to 1,400.00. Bulls eyeing 1,420/25.00 before pulling back

Technical outlook and chart setups:

The metal moved above 1,400.00 last week, as it had been expected. Though it was an aggressive trade setup, there might be some steam left for bulls to rally further towards 1,425.00 before a significant retracement takes place. If long positions were initiated last week, they can be held for a final thrust towards 1,420.00. Fresh long positions should be avoided at current levels. Immediate resistance is 1,420/25.00 while support is at the 1,350/70.00 levels. Looking into the entire wave structure, if 1,420/25.00 is reached, it would indicate a major break through for bulls and the trading strategy would turn to buying on dips for a long-term rally.

Trading recommendations:

Flat for now.

Good luck!