09.05.201407:38 Forex Analysis & Reviews: Technical analysis of gold for May 09, 2014

GOLD

Unemployment insurance weekly claims

In the week ending May 3, the advance figure for seasonally adjusted initial claims was 319,000, a decrease of 26,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 344,000 to 345,000. The 4-week moving average was 324,750, an increase of 4,500 from the previous week's revised average. The previous week's average was revised up by 250 from 320,000 to 320,250.

Technical view-

The metal is struggling to sustain above $1,292 levels. The pair has been consolidating between 50.0-61.8 fib levels $1,285-$1,292. Until the metal comes out of this range, we can't see further move. As for the RSI in the h4 chart, it indicates something is cooking inside. The RSI is consolidating near the buy mode. We expect the downside is limited from the current levels and we will soon get a one side move towards $1,296 and $1,302 as initial targets. On the down side, if the price breaks $1,284.70, it will fall up to $1,281.50, $1,280.10, and $1,277 immediately.

On positional basis, the metal is in a sell mode until it closes below $1,300. The bulls back on track only close above $1,300. The metal was making lower lows and lower highs for the last 3 trading sessions trading below all the short and medium-term moving averages. If the metal breaks below the $1,284.70, it will drift to $1,280, $1,277, $1,273, $1,268, $1,262, and $1,260 levels.

Recommendations - $1,290

Safe traders - Buy above $1,292 target $1,296, $1,300, and $1,302

Sell below $1,284.70, targets $1,280, $1,277

Risky traders buy at cmp target $1,300 and $1,304.30

Adopt a strategy and trade safe