FX.co ★ Analysis of Gold for February 01, 2019

Buying climax in the background on Gold. The buying climax represents a big sign of weakness, which made Gold trade sideways. So far, I found that buyers don't have power for another strong push higher, so we exited our both long positions with 3,700-pips profit. Now we are waiting for a potential break of the key short-term support at $1,316.00 to confirm the downside. Major resistance is set at the price of $1,325.00.The potential head and shoulders pattern is in creation, which is another sign of the potential weakness.

R1: $1.330.00

R2: $1.335.50

R3: $1.339.45

Pivot: $1.326.80

S1: $1.321.25

S2: $1.317.27

S3: $1.312.35

Trading recommendation: We are neutral on Gold but if we see the break of the support ($1.316.00), we will sell Gold with SL at $1.325.00 and targets at $1.309.50-$1.298.00.