FX.co ★ GOLD: Analysis for June 26, 2013

Overview:

Since our last analysis Gold has been trading downward moves like we expected, we almost got our second short-term target level FE 100% at price 1,221.00. Price tested level 1,223.00 and we may expect testing of level 1,221.00. I saw decreasing volume in the previous move up which is a good sign of weakness for future up. First up leg got 326,000 total volume and if you compare it with the second up leg where we got 212,000 of total volume, you will find 35% decreasing on the second leg which is a good sign that we may see future down. I also calculated previous down leg and I got 368,000 of total volume which is a strong sign that corrective phase after huge selling climax has ended. Current situation on (1H) chart is that we strong bearish volume and supply on the market. In the short term, buying of this pair looks very risky so I advise you to watch for selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1 : 1,284.61

R2 : 1,288.79

R3 : 1,295.55

Support levels:

S1 : 1,271.09

S2 : 1,266.91

S3 : 1,260.15

Trading recommendation: Operating with the metal, be careful with short-term buying and look for selling opportunities. My recommendation for down short-term target is 1,221.00.