FX.co ★ Gold technical analysis for May 19, 2014

Gold price holds short-term support levels making now another try to move above $1,300. The trend remains sideways inside the triangle range. So there is no clear trend in force. Gold price as shown in the 4-hour chart below remains above the Ichimoku cloud and this favors another move upwards towards the upper triangle boundaries.

Important resistance levels are at $1,305 and $1,315. Important support levels are $1,287 and $1,270. Currently, we prefer to be neutral. If any level is broken, then we take a position. For example, if $1,287 is broken, then we short with the $1,305 stop, and we add when $1,270 support is broken. If $1,305 is broken, we go long with the $1,287 stop and we add above $1,315. If resistance levels are broken, $1,330-5 is our target. If support fails, the area of $1,240-$1,200 is the target.

The daily chart continues to show that we should remain at least neutral if not bullish as long as price closes above $1,275. Support levels are being held and this should be respected. Sellers are not strong enough to break support. Price is above support at $1,275 and long positions should be preferred. Our longer-term view is bearish but as long as price is above $1,275, we see price reaching $1,330-50.