The yellow metal rebounds from the lower levels after the soft US data hit the wires. The overall picture favors bears. In Friday’s session, the metal gained approximately $35 and closed above the day’s high. Today, the metal opened on a bearish note, opened higher at $1,177.60. We recommend buying only above $1,178.50 levels and strong upmove will underpin above $1,183.00 with the targets at 1,200 .00 and 1,212.00. The weekly support exists at $1,161.00, below this free mode will be triggered. As we recommended earlier, we are still looking at the lower level targets of $1,024.00, $927.00 and $850.00-$800.00 in the longer-term view. The metal has strong resistance at the broken support trend line, above this at $1,188.00 200MSma and $1,212.00 200MEma. The monthly resistance exists at $1,233.00.
Resistance: $1,178.50, $1,182.00, $1,200.00.
Support: $1,161.00, $1,131.00, $1,102.00.
For an hourly basis, the prices are closed above 35DEMA and 12ema levels. The prices have strong resistance at $1,178.50. We recommend buying above $1,178.50 with the targets at $1,182.00, above this at $1,190.00 and $1,193.00. In case, if the prices break below $1,167.90, the weakness persists. We recommend selling at $1,167.00 with the targets at $1,158.00, below this at $1,152.00 and $1,146.00. Currently, the trading range of the prices is framed between $1,178.40 and $1,167.90 levels. Either side breakout will provide further room for trading.
The material has been provided by InstaForex Company – www.instaforex.com