Gold: Technical Outlook

Gold prices are continuously following the descending trend line on daily chart since the end of August 2013. The 100-day SMA has also been an important indicator since past few days.

The yellow metal is currently trading near $1317.50, near 50% Fibonacci Retracement Level of its recent up move from $1180 to $1433.

From the current level, gold is having immediate resistance of $1326, breaking which it can test the important resistance level of $1338 (including descending trend line connecting the highs of $1433 and $1352 as well as 38.2% Fibonacci Retracement Level).

If the yellow metal sustains a breakout above $1338, it is vulnerable to head towards $1375 – $1378 resistance zone with $1353 being intermediate resistance level.

On the down side, the metal is expected to have $1306 as an immediate support (50% Fibonacci Retracement Level), which is closely followed by $1298 support level, breaking which it has multiple support levels between $1278 – $1268 (including 61.8% Fibonacci Retracement Level).

A sustained breakdown below $1268 can result the yellow metal to test $1220 levels.

Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/