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06.05.2013 03:19 PM
Gold remains unchanged. 1,500/20 remains resistance to enter short positions

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Technical outlook and chart setups:

The metal has virtually remained unchanged since few trading sessions; moving in a trading range between 1,440/50 and 1,470/75 as shown here. It is recommended to enter buying towards 1,420/40 levels only since it is the 0.618 support zone of the rally till now. If prices manage to rally past 1,480/85 levels from here, it is expected to reach 1,500/20 levels, which is strong resistance level (past support turned resistance). It is recommended to initiate short positions around 1,500/20 levels, if prices rally straight up from here. Near-term support is at 1,440.00 and 1,320.00, while resistance is at 1,480/85, respectively. Bottom line: Buy low or sell high for now.

Trading recommendations:

Buy between 1,420 and 1,440, or sell around 1,500/20 levels.

Good luck!

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