FX.co ★ Gold falls further below the 1,300 levels. Support is at 1,270 now

Technical outlook and chart setups:

The metal has dropped below 1,300.00, clearly breaking the support line extending from the 1,180.00 levels earlier. Long positions has been taken earlier with a stop below the 1,270.00 levels. The immediate support level is at 1,270.00, followed by 1,210.00 and 1,180.00; while resistance is at 1,430/40 respectively. Gold is headed to fresh lows, an exit is recommended at the counter trend rally (the back side of the support line); on the other hand, a bullish bounce back from the 1,275/80 levels now, could still cause the revival of bullish trend. Watch out for a reaction around 1,270.00 to take cues of further action; the beginning of a bearish trend cannot be ruled out yet.

Trading recommendations:

Remain long with stop below 1,270.00. If stopped out, start selling on rallies.

Good luck!