FX.co ★ Technical analysis of Gold for November 07, 2014

Technical outlook and chart setups:

Gold has made fresh lows at $1,130.00 level before pulling back into $1,142.00/43.00 levels again. The metal is not completely out of the bearish momentum, but a push above $1,150.00/55.00 levels would be at least a breather for bulls to produce a counter-trend rally. Please also note that $1,150.00 level is the 0.618 Fibonacci support of the entire rally between $680.00 to $1,900.00 respectively. Yesterday there was an indecisive candle on daily chart and a Hammer is being produced today. These are indications that there might be a counter-trend rally as a short-term relief for the yellow metal. On the flip side, a push through $1,250.00 levels could confirm a reversal.

Trading recommendations:

Remain flat for now. Aggressive trade setup could be to initiate long positions, stop at $1,125.50, target is open.

Good luck!