FX.co ★ Technical analysis of Gold for May 09, 2014

Technical outlook and chart setups:

1. Gold seems to have bottomed around $1,287.00/90.00 levels. Please, note that it is also the fibonacci 0.618 support as shown here. A bullish reversal should be expected here and minimum upside extensions are pointing at $1,330.00 levels if not further. Recommendations are to remain long for now, risk remains below $1,270.00 levels.

2. Support is seen at $1,270.00 (interim), followed by $1,230.00/40.00, $1,210.00 and lower while resistance is seen at $1,330.00, followed by $1,350.00/60.00 and higher up respectively.

3. The structure indicates that the metal remains in control of bulls till prices stay above $1,270.00 levels. Only a break lower will delay matters and move towards $1,230.00/40.00 levels and even lower.

Trading recommendations:

Remain long, stop below $1,270.00, target is open.

Good luck!