19.05.201407:03 Forex Analysis & Reviews: Technical analysis of gold for May 19, 2014

The yellow metal has stuck in a trading range between $1,315 and $1,277. The weekly multiple support level of $1,277 has held the metal so many times for the last 7 weeks. The monthly cluster support zone exists between the $1,277- $1,268.20-$1,259 levels. On the up side, the resistance is placed at $1,300-$1,308.60-$1,315.20. A weekly close below the $1,277 creates one side action, attracting lower targets.

In Asia's trading session, the metal is trading at $1,291. The metal opened on a marginal bullish note. As of now, it is taking support at $1,288.80 (May 13 low), below this, it has support at $1,285 and $1,280 levels. We expect the metal will pull back to $1,295, $1,298,$1,300, $1,302.60, $1,306.60, $1,308, and maybe even $1,320 levels. On the down side, if the metal breaks the $1,288.80 level, it will fall to $1,287.50, $1,286.30, $1,284.40, $1,278.50, $1,277 and $1,273 levels.

In case of a day close above $1,300, technical buying will be active.

In case of a weekly close below $1,277, major correction will take place to $1,260, $1,245 and $1,213 levels.

Intraday support exists at $1,288.80-$1,287.50-$1,286.30. Sell below $1,286.30 for targets at $1,284.50, $1,280, $1,178.50 and $1,277.

Hold longs with sl $1,286.30, cmp $1,291.