The metal is going through a huge consolidation and making a symmetric triangle, either breakout will create a wide room for trading. The height of the triangle is 62.5 points, which creates a new direction in the near-term future. The pair has been trying to break the 50-day SMA for the last one month, but the effort is fruitless. It has been consolidating from last one and half month, we expect the metal will give a breakout towards $1,318.6, $1,330 and $1,365 levels, this view is valid until it holds the $1,277 levels on the weekly closing basis. On the up side, the metal is facing strong resistance at $1,301.73 (50-day SMA), above this, it will fly up to $1,318.63 (200-day EMA) and $1,330.70. The higher target $1,365 will be achieved only when the metal breaks the $1,330.70 levels.
If the metal is unable to break $1,330.70 (April 14 high), the lower target at $1,213 is still an attractive target with interim support at $1,283, $1,278.5, $1,273.80, $1,268, $1,260, $1,245, $1,230 and $1,213. A weekly close below $1,277 levels, then a deep correction will take the metal towards the $1,213 levels. Until that buy on dip with sl $1,277 on a closing basis.
For an hourly basis, the metal is facing resistance at $1,295.30, above this, it will try to fly up to $1,298, $1,300.10 and $1,301.50 levels. On the down side, the metal has support at $1,291.70 and $1,289.70. In xase of a break below this, it will fall to $1,284.80, $1,283, $1,278.50 and $1,277. Next downside targets are only below $1,277.
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on market trends you may visit via Forecast for gold for May 23, 2014 . Thanks for your support on Forecast for gold for May 23, 2014
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