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Technical analysis and trading recommendation of Gold for February 16, 2015

The metal lost 0.70% in the previous week. Ahead of China's new year on February 19th, good buying is seen in China. During the previous week, the weaker US dollar helped the metal to hold the crucial support levels at $1,217.00. If a daily close is below $1,217.00, bears can challenge $1,207.00, $1,204.00, and $1,199.00. The weekly key support level exists at $1,216.00. We recommend fresh selling only below $1,216.00. The weekly resistance is set at $1,246.00 and $1,261.00. Today, US markets will be shut down. At the Asian session, the metal is trading on a bullish note. On the h4 chart, the prices are facing strong resistance at 34hrsma and a 2-week descending trend line. We recommend fresh buying above $1,235.00 with the targets at $1,240.00 and $1,245.00. On the down side, the intraday support is set at $1,226.00 and $1,222.00. Risky traders can start selling below $1,226.00 and safe traders sell below $1,222.00 with small targets at $1,219.00 and $1,217.00. The real panic situation will trigger below $1,216.00. Ahead of the Eurogroup meeting and due to the holiday in the US, the metal is muted and looking in the southward direction. On the h1 chart, the prices are making higher lows and higher highs.


Resistance: $1,235.00 $1,240.00, $1,246.00.


Support: $1,226.00 $1222.00, $1,217.00.


Risky selling is below $1,226.00, safe selling is below $1,222.00.


GOLDH4.pngThe material has been provided by InstaForex Company - www.instaforex.com