As we expected and advised in the previous article, the metal touched $1,223.80. However, it was unable to provide a fresh upside breakout. Soft US jobs data supported bulls. Weak data gave bulls enough mileage to trade at a 1-month high. Weekly resistance is seen at $1,244.00. Traders are preparing for tomorrow's mega event FOMC meeting minutes. Today, the metal was trading on a bearish bias at the Asian session. The metal has strong resistance between $1,232.00 and $1,234.60 above these; parallel resistance at $1,239.00 comes to existence. In the daily chart, we can observe the formation of head and shoulder pattern. The right hand shoulder is in progress. As we recommended on April 2, 2015, if the metal managed to close above $1,212.00, we can expect $1,221.00, $1,230.00, $1,235.00, and $1,244.00. In the extreme case, we can expect 1300.00 as well. The metal made a high of $1,223.80. This is too early to recommend $1,300.00; breakout is not given yet on the upside. We will re-analyze the chart in case a breakout takes place. The weekly pattern is framed between $1,244.00 and $1,178.00. The metal price movement is likely to favor bulls in the near term. The price has slightly corrected, and another sharp run takes place again. Intraday support is found at $1,208.00. Below this, we recommend selling with targets at $1,201.00, $1,198.00, and $1,195.00. The weekly uptrend is likely to erase in case price breaks below $1,194.00.
Trade:
Selling only below $1,208.00
The material has been provided by InstaForex Company - www.instaforex.com
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