FX.co ★ Gold Technical Analysis for October 18, 2016.

Technical outlook and chart setups:

Gold had dropped lower towards $1,245.00 levels on Friday before pulling back. The metal is seen to be trading at $1,257.00 levels for now and is likely to rally from here. A push above $1,261.00 levels should accelerate the movement towards $1,280.00 and above. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned resistance zone at $1,304.00/10 levels which is Fibonacci 0.50% of the entire drop between $1,375.00 and $1,240.00 levels not depicted here. Also note that the broken support trend line will act as resistance around the same levels. It is recommended to remain flat now and look to sell around $1,300.00/10.00 levels again, while aggressive traders should remain long with risk below $1,240.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support lies at $1,240.00 levels.

Trading recommendations:

Remain flat for now. Aggressive traders are recommended to keep long positions now with stop at $1,240.00 levels, targeting $1,310.00.

Good luck!