Gold rallied again on Tuesday's trading session after The Conference Board Consumer Confidence Index was released. The index, which had increased in January, fell moderately in February. Now it stands at 78.1, down from 79.4. The decline in the Consumer Confidence Index resulted concerns over the short-term outlook for business conditions, which affect hiring and earnings.
In the weekly chart, gold is trading above all the short- and medium-term moving averages and RSI is still in the buying mode. These two factors add some more room for upside. Gold price is pushed to a 17-week high reached above 1,340.0 levels. But the crucial resistance and trend decider level is $1,362.0. If the Fed makes any changes in its tapering program, then only gold will become fundamentally weak. The recent printed data made gold fundamentally strong.
S1 $1,327.0 R1 $1,356.0
S2 $1,307.0 R1 $1,362.0
S3 $1,245.0 R1 $1,375.0
In the daily and hourly charts, gold is trading in a highly bullish note. But oscillators are giving a negative indication. RSI stood at 75 levels in the daily chart. If you observe the below chart, you can clearly see the RSI at its peak levels 85 and 80.6 from where gold made a high and fell. Now the RSI stood at 75 levels, very near to the previous high 80.6 at that gold was trading at the level of $1,771.70. So it is clear that we are approaching a short-term top.
S1 $1,339.00 R1 $1,343.50
S2 $1,335.00 R1 $1,346.00
S3 $1,333.00 R1 $1,350.00
Intraday recommendation-
Sell below $1,339 targets are $1,337, $1,335-$1,333.0.
Buy above $1,341 for targets $1,345 and $1,350.0.
Positional- Strong support area of $1,335-$1,333, major weakness only below these levels.
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on market trends you may visit via Analysis of gold for February 26, 2014 . Thanks for your support on Analysis of gold for February 26, 2014
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