FX.co ★ Technical analysis of gold for January 24, 2014

Gold is in the first strongest intraday rally in the new year of 2014 trading at a 5-week high. Looking at gold chart, we see that this yellow metal has corrected for more than a year now. It seems gold could be making a triangle or a flat. As we have consecutive abc's in the daily chart. In the hourly chart, oscillators showing sell signal with an overbought indication. Yesterday, we recommended a buy call with sl at $1,230. After the existing home sales and unemployment data, fireworks started in gold and it made the strongest rally with all our targets met intraday. Today we recommend a sell call. If gold unable to cross the resistance level of $1,268, we can see new lower levels before it make a bottom.

Recommendation- Sell with sl $1,268, targets are $1,255 and $1,250, cmp $1,264.