FX.co ★ Technical analysis on Gold for October 24, 2014

The greenback is supported by the stronger US weekly jobless claims numbers resulted in sell-offs of the metal. In yesterday's session the metal was rejected exactly at 50Sma and held support at 20Dsma. The trading pattern is framed between $1,243.50 (50Dsma) and $1,225.00 (20Dsma). In my previous article, I gave an alert, the metal prices was making a broadening top at $1,249.50. Within one day we can see the result, the asset fell approximately $20. In yesterday's article we recommended selling below $1,236.00, and for risky traders, selling below $1,239.00, a low made at $1,226.00 levels. Currently the metal is trading at $1,230.50, traders can book profit here. In case, the metal closes below $1,225.00, we can see the extension of the fall towards $1,217, below this panic selling will be triggered. We can expect strong upswing only above $1,250 levels. On the higher side, it has resistance at $1,245, 50Dsma, and $1,249.50 levels. The Stochastic in the daily chart is indicating a sell signal.

For an hourly view, the prices have been trading below the 12ema and 34hrsma hourly key moving averages. The metal has support between $1,228 and $1,226 levels. We recommend fresh selling below $1,226 for targets at $1,222.00 and $1,217.50 levels. The panic selling will be triggered below $1,217 for targets at $1,210 and $1,205 levels. Today the metal is facing resistance at 12DEMA. On the other hand, we see some buying above $1,234.50 levels.

Trade-

Selling below $1,226.00