13.05.201403:31 Forex Analysis & Reviews: Technical analysis of gold for may 13, 2014

Gold
All eyes are on today's US core retail sales and retail sales. We expect the indicator to rise at solid pace. The sales growth is likely to be above 0.4%. In yesterday's session Gold was supported by geo-political tensions. The SPDR gold fell to 780.46 tonnes from 782.80 tonnes.

In yesterday's session the metal again hold the parallel support at $1,277 levels. The trading pattern was framed between $1,277-1304.70 levels. The RSI in the weekly chart is still showing the positive direction. The weekly key supports were placed at $1,285 and $1,277 levels. On the upside, resistance levels were placed at $1,300 and $1,315.

The metal was unable to close above the 1,300 level and it was a bearish view. In yesterday's trading session, the metal found support below the trendline in the daily chart. On the upside, the metal has strong resistance level at $1,300. Daily close is seen above it. The bulls are likely to gain some strength and push up to $1,$305 and $1,311 (50daily SMA). A medium-term reversal is expected to take place once the metal closes above the 50SMA ($1,311) so that it can move up to $1,315,$1,320 and $1,325 levels. On the downside, if the metal breaks the multi support level of $1,277, it will drift up to $1,273, $1,270, $1,268 and $1,260 levels. If it closes below the $1,277 level, we expect the metal it to drift all the way to $1,260, $1,245 and $1,213 levels.

Currently, the metal is trading at $1,295.20 in Asia's trading session. It is facing strong resistance at $1,295.70 (hourly 50SMA). The hourly Stochastics indicating another downfall to $1,292.10, $1,290.70 and $1,287.70. Below the $1,290.70, it is seen to extend its fall to $1,284.40, $1,280 levels. However, if the metal trades above the 50SMA $1,295.70, it will zoom up to $1,297.40, $1,300.40, $1,305, $1,312.80 and $1,315 levels.

Recommendations-

Sell below $1,294.40

Buy above $1,297.50