Technical analysis for Gold for December 28, 2018

Technical outlook:

An hourly chart has been presented here to have a short- and medium-term outlook for Gold. The metal had rallied to the $1,280 levels earlier, above the projected target, before reversing sharply lower to the $1,265 levels. In the process, it broke the immediate trendline support as depicted on the charts. Ideally, bears should take control back, until the prices remain below the $1,280 levels. At the moment, Gold is testing the Fibonacci 0.786 resistance at the $1,276/77 levels and a bearish reversal could be encouraging for bears. If the structure remains as above, we could see downside targets of $1,255 and lower as depicted with the Fibonacci extensions here. The critical resistance at $1,280 should be kept for bears to resume their movement lower from here.

Trading plan:

Remain short with a stop loss order above $1,280, and the target of at least $1,255.

Good luck!

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis for Gold for December 28, 2018