The gold is supported by the weak U.S. dollar and technicals added some strength to push $54 from the low's. The base of the triangle saved the metal from another drastic fall. As we recommended in our previous article on October 07, 2014, in case the metal closes below $1,180 on a monthly basis, we can see $1,100 and $1,035 levels. Our recommendations remain the same. This week the metal opened on a strong note, sustaining above the previous week's close. After 39 trading sessions, the metal successfully closed above the 20Dsma levels. Twice the 20Dsma gave enough support to move higher. On the higher side, the metal has strong resistance at $1,242 previous swing low and 38.2 fib level. Above this, $1,254.50 will act as a strong resistance. In case of a daily close above $1,254.50, the short trend can turn to positive. We recommend fresh buying only above $1,242 levels. On the down side, the metal has support at $1,222, $1,217.50 below this $1,200 and $1,180 levels. In case, the metal closes below $1,217 20Dsma, the weekly trend turns to negative.
Support: $1,217, $1,200, $1,180
Resistance: $1,242, $1,254.50, $1,274.50
For an intraday view, the prices are closed and trading above 12ema and 21hrsma. In the H4 chart, the 2hrsma is providing enough support to push prices towards the key resistance levels. Today the metal opened on a bearish note. Hourly traders can start buying only above $1,337.50 target $1,240-$1,241. Safe trades start buying only above $1,242 target $1,250 and $1,254 levels.
Trade:
Buy only above $1,242.
Traders can wait patiently to buy above $1,242, whereas risky trader's can start selling using the sl $1,242.
The material has been provided by InstaForex Company - www.instaforex.com
