The yellow metal drifted to $1,213 levels in Friday's session, but managed to close above $1,215 levels. The strong US dollar puts pressure on the metal. Now the metal is trading at $1,215.70, it made a low at $1,214.50. The metal has support at $1,212 (200MEma) and $1,185 (200MSma). The short- and medium-term trend setup at these levels; in case of a daily and weekly close below $1,212, the metal will drift towards $1,185, $1,150 and may be even lower to $1,120 levels. Twice these levels pushed the metal from the lower levels. In June 2013 the metal made a low at $1,180, hit the 200MEma, but 200MSma helped the metal to push higher levels and in December 2013 the situation repeated. Currently the metal testing its fortune at the same support zones again. If this time the metal holds the support, it will give a good rally again, but the chances are very remote. We can still see the bear image in the metal chart.
Support $1,212, $1,185-$1,180, $1,120
Resistance $1,228, $1,242, $1,254
For an intraday session, the metal will face strong selling pressure if it stays below $1,215 and another free fall to $1,212 levels. Even though the metal made a low at $1,214.50 today in the pacific session and $1,213.40 in Friday's deals, but it remained above $1,215 levels. We recommend a safe selling below $1,212 or wait for a minor pullback to sell. The metal has resistance at $1,219 and $1,229 levels. Safe buying will be triggered only above $1,229 towards $1,238-$1,241.50.
The material has been provided by InstaForex Company - www.instaforex.com
