13.06.201403:44 Forex Analysis & Reviews: Technical analysis of gold for June 13, 2014

GOLD

Review- Gold slowly moved to 2-week high amid Iraq violence. The concerns in Iraq brought the yellow metal to the green light. We recommended to buy (June 09 article) the yellow metal for targets at 1,260, 1,268, 1,273.80, 1,278.50 and 1,288 levels with sl 1,240. We requested traders to book profits here at cmp 1,273 levels.

Weekly analysis-

Currently the pair is facing resistance at the 38.2 fib level in the weekly chart. On the upside, the metal will have a rough road ahead between $1,277.40 -$1,278.50. Above $1,278.50, it can travel up to $1,283, $1,284.70, $1,289.60 and $1,296.50 levels. In the weekly chart, the metal is making a bullish wedge pattern. If this week, the metal breaches the upper trend line, it can give an upside breakout for $1,296 levels.

For an intraday basis, the metal is trading at $1,272.40 in Asia's trading session. It is facing strong resistance at 200-hour EMA at $1,275 levels. Risky traders can go short with sl $1,278.50, selling zone at cmp and some more up at $1,275-$1,277.50. This view involves high risks under the current circumstances. Safe trades can sell below $1,268 levels. If the metal breaches the upside resistance at $1,278.50, traders can buy for $1,284.50-$1,286 levels. The hourly momentum oscillators favor limited upside.

On the downside, the selling will become double below $1,268, it can drift up to $1,264, $1,262 and $1,260.

NOTE-

Risky traders- sell at cmp $1,272.50 for targets at $1,268, $1,264, $1,262 and $1,260.

Safe traders- Sell below $1,268.

Buy above $1,278.50 for targets at $1,284.50 and $1,286 (intraday).

Buy above $1,278.50 with targets at $1,284.50, $1,286, $1,289.60, and $1,296.50 levels (positional).

Adopt a strategy and please trade safe.