FX.co ★ Technical analysis of Gold for February 09, 2016

Technical outlook and chart setups:

Gold is trading lower around $1,191.50 now after reaching fresh highs of $1,200.00 yesterday. The metal seems to have formed a meaningful top now after bulls managed to hit highs of $1,191.00. Please also note that the metal has broken above intermediary resistance line as seen here. Hence, a move higher should be on the lower side to test the back side of the trend line, which is support now. It is hence recommended to initiate small short positions (aggressive trade), with risk above yesterday's high. A more conservative way to trade is to remain flat for now and wait for a correction lower to go long again. Immediate resistance is seen at $1,210.00, while support is seen at $1,165.00. A Fibonacci 0.618 resistance of larger wave is also seen at $1,210.00 as depicted here.

Trading recommendations:

Remain flat for now or go short aggressively with stop above the level of $1,200.00.

Good luck!