FX.co ★ Technical analysis of Gold for January 06, 2014

Technical outlook and chart setups:

1. Gold has risen past the $1,230.00 level after printing lows at $1,182.00 last week. Please note that it is at the 0.618 fibonacci resistance in $1,230.00/40.00 region.

2. Immediate resistance is at $1,245.00 followed by $1,250.00, $1,267.00 and higher, while support is at $1,182.00 followed by $1,180.00, respectively.

3. The structure reveals that a break of December lows at $1,182.00 would further push prices towards $1,150.00/60.00. On the other hand, a break of $1,250.00 and subsequently $1,267.00 would confirm that trend is reversing.

Trade recommendations:

Initiate short positions now ($1,236.00/37.00), stop is at $1,250.00, target is $1,150.00/60.00.

Good luck!