The soft US data pushed the metal from a 3-month low. The metal pushed out from the triangle and closed below the bottom of the triangle on the previous week. On a weekly basis, the metal has strong resistance at $1,289 (50Wsma) and $1,293.35 (20Wsma). Until the metal closes above $1,289, selling on rallies mints the money. The metal has strong resistance at $1,285.60, $1,289 and $1,293.35 for the week September 08-12, 2014. Bulls must take the pair into the triangle again, if no bears play will hit the metal towards $1,250 and $1,240 in the near term. This view is valid for the rest of the month.
If a daily close is above $1,285.60, the daily trend turns to a buy side. - pending
If a weekly close is above $1,289, the weekly trend turns to positive. - pending
Support is at $1,258, $1,250, and $1,240.
Resistance is at $1,285.60, $1,289, and $1,293.35.
Intraday cmp $1,269.90
The metal is trading at $1,269.90 in an early Pacific session. The metal has strong resistance in the descending hourly trend line above the $1,273 level. On the down side, it has support at $1,266 and $1,264. We recommend selling only below $1,264 for hourly targets at $1,262, $1,260 and $1,258. A strong buy will emerge above $1,273.50 for an upside target at the $1,276.90 and $1,280-$1,281 levels.
Buy above $1,273.50.
Sell below $1,264. Hourly panic below $1,262 towards $1,258.
The material has been provided by InstaForex Company - www.instaforex.com
