Technical analysis of Gold for July 18, 2014 Trend News

GOLD

The US housing data and Malaysian Airlines crash pushed gold towards the 61.8 fib level in yesterday's trade. In early Asia's session, it exactly touched the 61.8 fib level. We expect the metal to correct a bit, until it breaches the $1,324.50 levels. The metal is trading below the 20 DSma, which adds fuel to the bears. On the downside, it has support at $1,313, $1,311 (200ESma), $1,303 (200 DSma) and $1,291.50 (50DSma) levels.

For an hourly trading the metal has initial resistance at $1,318.80 (20 DSma), a 4-hour high. On the downside, it has support at $1,314.40 (8 hr low) and 34 HSma, $1,312, $1,307 (35 HDema) and $1,304.60 (21 HSma).

· A day close below $1,291, the short-term trend turns negative towards $1,285, $1,275 and $1,258.

· A breach above $1,324.50, it can extend its rally up to $1,331.50, $1,346, $1,360 and $1,375.

· Today close above $1,311, the bulls will have an upper hand.

Support: $1,314.40, $1,312, $1,307.

Risky- Buy above $1,318.50.

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



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