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

Technical outlook and chart setups:

1. Gold has formed bottom at $1,280.00 levels recently as it was expected and discussed earlier. The metal has bounced off producing a morning star bullish reversal candle as well. A break above $1,310.00 would confirm that bulls are back in control.

2. Support is seen at $1,280.00 (interim), followed by $1,260.00, $1,240.00/30.00 and lower while resistance is seen at $1,310.00, followed by $1,325.00/40.00, $1,388.00 and higher respectively.

3. The structure indicates that Gold might have turned bullish again and would make higher highs and higher lows to reach $1410.00.

Trading recommendations:

Initiate 50% long positions, stop at $1,250.00, target is open.

Good luck!