12.03.201404:28 Forex Analysis & Reviews: Analysis of gold for March 12, 2014

Safe haven demand is still present, as markets watch closely the situation on the Crimean peninsula. Ukrainian armed forces are testing the combat readiness of troops. Russia, which has vowed to defend the ethnic Russians in Crimea after an uprising in Kiev, accused Ukraine of ignoring radicals in the region. Ukraine’s Prime Minister Arseniy Yatsenyuk said that he would visit Washington on March 12, as Russia’s President Vladimir Putin encouraged the actions of Crimea’s local government. A vote on March 16th may be used by the Crimean government in order to leave Ukraine and join Russia, as reported by Bloomberg.

Technical view-

In the H4 and H1 charts, we can see a clear negative divergence. But gold didn't obey that. It is making a base at the level $1,328.0 and moving to the resistance level $1,355.0. Gold has been holding the $1,328.0, 200EMA level since the Ukraine news came into limelight. It is trading in a range between $1,328.0-$1,355.0. In yesterday's trading session, gold raised its support level and keep on trying to cross the $1,355.0. As of now in the Asia's trading session, it is trading at $1,348.5. The trading range has improved to $1,337-$1,355. It's a good sign for bulls.  If gold crosses the $1350 level, it will fly to $1352,$1355,$1,359 and $1,362 immediately, whereas $1355.0 is the neckline strong resistance. A break below $1,346 leads to fall up to $1344 $1341 and $1,337. Major fall only below the level $1,337.0 towards $1,328.0 $1,318.0 and $1,310.0

Recommendation-

Intraday-Buy above $1350.0 targets $1352 $1355.0. 

Positional-

S1   $1,337.0 R1   $1,355.0

S2   $1,328.0 R2   $1,359.0

S3   $1,318.0 R3   $1,375.0

A day close above the level $1,355.0 we will see $1,359.0 $1,362.0, $1,375.0, $1,395.0, $1,420.0 and $1,440.0 (if it trades above $1,363.0,then only we see higher levels)