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19.05.201606:04 Forex Analysis & Reviews: Technical analysis of Gold for May 19, 2016

Long-term review

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Technical outlook and chart setups:

Gold has dropped lower and is seen to be trading at $1,258.00 levels, looking to pull back higher for now before turning bearish again. Please note that the yellow metal has again found support around fibonacci 0.618 levels of the rally between $1,227.00 and $1,303.00 levels respectively. Moreover, the metal is seen to be above the trendline support and past resistance turned support area around $1,255.00 levels. A bullish reversal here would warrant a rally that might take us above $1,303.00 levels. It is recommended to book profits on short positions taken earlier and remain flat for now. Immediate support is seen at $1,256.00 levels while resistance is at $1,280.00 levels respectively. Only a break below the trend line would be encouraging to bears.

Trading recommendations:

Remain flat for now.

Good luck!

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