FX.co ★ GOLD: analysis for December 11, 2013

Overview:

Since our last analysis, Gold has been trading upwards, the price tested the level of 1,267.68 on high volume, we are still waiting for further downward movement. In the daily chart, we can observe demand bar on volume above the average. We are still likely to see it testing the weekly FE level of 161.8% (weekly third target) at the price of 1,151.00. I placed Fibonacci expansion levels to find potential ending of the current bullish corrective phase, and I got FE 161.8% at 1,274.62. 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 after bullish correction.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,266.55

R2: 1,273.61

R3: 1,285.03

Support levels:

S1: 1,243.71

S2: 1,236.65

S3: 1,225.23

Trading recommendation: Trading the metal, be careful with short-term buying and look for selling opportunities after bullish correction. My recommendation for a downward short-term target is to place it at 1,151.00.