Gold (currently at: 1202 level) after a false breakout to 1220 level, it fell after touching 1224.45 level to find a minor support around 1183.36. The 1220 level is still a strong resistance to test one more time and due to the false breakout, we’ve to add extra pips to the current resistance to make sure that we will not lose any pips. After revising my chart, I can suggest to raise our resistance to 1235 level.
I recommend that you hold on for a while and do not open long positions for the gold, buying gold in this area seems to be a little bit dangerous (& if you do that, take profit quickly) especially that uncertainty is blurring the trend. I am still waiting for the gold to fall sharply this time before picking the right point to buy.
The GOLD (XAU/USD) has the following major resistance and support levels:
- RESISTANCE: 1235
- SUPPORT: 1076
Breaking these levels in any direction will take us higher or lower.
My Daily BUY/SELL advice (50 pips stop loss applied):
- Sell: at 1210 – Take profit 1110 (100 pips profits)
- Sell: at 1230 – Take profit 1130 (100 pips profits)
- Sell: at 1160 – Take Profit 1090 (70 pips profits)
- Buy: at 1080 – Take Profit 1180 (100 pips profits)
This review is valid during trading week: 20th-24th April, 2015