FX.co ★ Technical analysis of Gold for October 21, 2014

Technical outlook and chart setups:

Gold made a high at $1,250.00 levels on October 15, 2014. Currently trading at $1,246.00/47.00, the metal is preparing for a pullback towards $1,208.00/10.00. This could just a correction, before the metal again rallies to a new high at $1,275.00 and $1,295.00 respectively. Immediate resistance is seen at $1,250.00, while support is seen at $1,205.00, followed by $1,183.00 respectively. Please also note that the back side of the inner down trend line could also provide support around $1,208.00/10.00 levels. Furthermore, $1,208.00 is also the fibonacci 0.618 support of rally between $1,183.00 and $1,250.00 levels. Look to again buy on dips.

Trading recommendations:

Remain flat for now and look to buy around $1,208.00/10.00. Aggressive traders may go short with stop at $1,255.50 and a target at $1,210.00.

Good luck!