FX.co ★ GOLD: analysis for August 12, 2013

Overview:

Since our last analysis, Gold has been trading upwards, the price tested 1,333.00 on low volume. We are still, likely, to see testing of the weekly FE level of 161.8% at the price of 1,151.00. I saw weak demand on volume above the average, according to the daily chart, which is the sign that we may see down trend continuation. The current situation in (4H) is that we got decreasing in volume on previous up move. Since we are in the short-term downtrend 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: 1,328.33

R2: 1,329.11

R3: 1,330.37

Support levels:

S1: 1,325.81

S2: 1,325.03

S3: 1,323.77

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