FX.co ★ Technical analysis of Gold for May 02, 2014

Technical outlook and chart setups:

1. Gold seems to have received support from $1,280.00 levels now. The metal could possibly stage a rally from current levels towards $1,330.00 levels as shown here; but $1,270.00 levels should hold. Till prices stay above $1,270.00, expect bulls to rally higher towards $1,330.00 at least. On the flip side, a break here would drop prices towards $1,230.00/40.00.

2. Support is at $1,270.00 (intermediary), followed by $1,230.00/40.00, $1,210.00 and lower while resistance is at $1,330.00, followed by $1,388.00 and higher respectively.

3. The structure indicates that Gold remains cautiously bullish till prices stay above $1,270.00 for now. However, a push higher through $1,330.00 levels would confirm that the trend is changed.

Trading recommendations:

A conservative approach is to remain flat while an aggressive trade setup is to remain long, stop is at $1,270.00 target is open.

Good luck!