FX.co ★ Gold intraday technical levels and trading recommendations for August 16, 2013

Supply levels: 1,370.40 and 1,423.30.

Demand levels: 1,340.20, 1,315.00, 1,282.00, 1,266.00, 1,255.10, and 1,209.

Bullish breakout above previous congestion zone extending between 1,265-1,298 took place, the bullish momentum was confirmed with previous Friday's price action (bullish hammer). However, a lack of bullish steam after hiting 1,347.8 led to a strong dip down below 1,282.95 (the recent bottom) that was contained around 1,272.40 slightly above the lower limit of the congestion zone.

A bullish position was suggested at retesting of 1,285 with SL located below 1,260, our position is running in profits now. Moreover, the metal established a new demand zone around 1,340 which was established after bullish breakout of the congestion zone 1,316.00 - 1,343.00 took place Yesterday.

Our running BUY position triggered on Monday can be closed at the current prices and we come to buy the metal again around 1,340.00 on retesting.

The metal will probably find temporary supply off 1,370.00 which may lead to some corrective movement towards 1,340.00.

Bullish breakout above 1,365.00 opens the way towards the next supply level around 1,423.00.