FX.co ★ Gold rallies to the 1,320.00 area. Exit long positions now

Technical outlook and chart setups:

The metal has rallied to the 1,310/20 levels as expected. It is quite possible that this rally extends to the 1,350/60 levels but after a retracement/pullback. It is, therefore, recommended to exit long positions taken earlier. Resistance levels are lined up from the 1,330.00 levels, followed by 1,350.00, 1,375.00 and 1,440.00; while supports begin from the 1,210.00 levels, followed by 1,180.00 respectively. The overall structure still indicates that a fresh low below 1,180.00 remains possible. Keeping this in view, an aggressive trade setup would be to initiate 50% capacity into short positions, risk is 1,375.00. If the metal does not break the 1,250.00 levels in the near term, an impressive rally would materialize.

Trading recommendations:

Exit long positions for now, initiate short positions in small quantity, set stop at 1,375.00.

Good luck!