GOLD
The yellow metal hammered almost 2% in yesterday's session. Portugal bank is erasing concerns which made metal to melt towards the crucial support levels. Today, traders keep an eye on Fed Chairwoman Yellen speech. On the down side, the metal has strong supports at $1,299.50 (50-W Sma). We can see another round of selling only below the $1,299.50 levels. The weekly Stochastics turn cross. The metal has strong resistance at the $1,311.50 levels.
The trading pattern is framed between $1,299.50-$1,311.50. On the lower side, if the metal hits support at $1,299.50, it can fall to $1,292 (50-D Sma) and $1,286.50 (200-D Sma). On the other hand, if it breaches $1,311.50, it can fly up to $1,318.50 (20-D Sma).
For an intraday basis, the hourly momentum oscillators are indicating oversold signs. The metal has strong support at $1,303 (16-hr low) and the resistance at $1,309.10 (6-hr high). If the metal breaks $1,309.10, it can fly up to the $1,311.40 levels, which is a strong key resistance level.
Note, cmp $1,307
Until the metal trades below $1,311.40 (200-E Sma), the hourly trend will favor bears.
Until the metal trades below $1,323 (35-hr Dema), $1,324.50 (34-hr Sma), and $1,327.50 (21-hr Sma), the intraweek trend will favor for bears.
Buy above $1,311.50
Sell below $1,299.50
