FX.co ★ GOLD : Analysis for August 06, 2013

Overview:

Since our last analysis, Gold has been trading downwards, as we expected, the price tested the level of 1,287.36 amid ultra high volume. I placed Fibonacci expansion levels to find the potential end of the ascendant corrective phase. We are still likely to see testing of the weekly FE level 161.8% at the price of 1,151.00. I saw supply bar on ultra high volume, according to the daily chart which is the sign that we may see the downtrend continuation. The current situation in (4H) is that we rejected from FE 161.8% at the price of 1,347.87 (SR zone) on ultra high volume. That is the sign that Gold may continue its downward movement. Since we are in the short-term downtrend and observe no demand in the daily chart, buying Gold looks very risky and I advise you to watch for selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,315.39

R2 : 1,320.77

R3 : 1,329.48

Support levels:

S1 : 1,297.97

S2 : 1,292.59

S3 : 1,283.88

Trading recommendation: Operating with metal, be careful with short-term buying and look for selling opportunities. My recommendation for a downward short-term target is 1,151.00.