Technical analysis and trading recommendations on Gold for February 20, 2015 Market Analysis Review

The yellow metal prices bounced from a 6-week low and gave up all its gains after the US dollar reinforcement. The Philly manufacturing index fell slightly from a reading of 6.3 in January to 5.2 this month. The current new orders index fell 3 points. The other data such as weekly unemployment insurance weekly claims data gave good thumbs up to the US dollar. In the week ending February 14, the flash figure for seasonally adjusted initial claims was 283,000, a decrease of 21,000 from the previous week's unrevised level of 304,000. China is heading into a holiday period ahead of the Lunar New year. Before this holiday period, physical buying also moderate. In India, RBI lifted a ban on gold imports. Nominated banks get permission to import gold on a consignment basis. The metal managed to hold a 4-month support raising the trend line. At yesterday's session, the metal rejected was from $1,222.50 and 34hrsma after Germany disagreed with Greece's proposal. On a weekly closing basis, bulls must close above $1,217.00. The intraday support is set at $1,205.00, $1,200.00, and $1,195.00. On the h4-chart, the prices are closed and trading below the hourly moving averages. The prices are expanding lower swings on the hourly charts. Intraday resistance is set at $1,222.50.

Resistance: $1,217.00, $1,222.50, $1,227.00.

Support: $1,205.00 $1,195.00, $1,185.00.

Selling below $1,205.00 with the targets at $1,200.00, $1,195.00, and $1,191.00.

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