FX.co ★ Gold: analysis for January 03, 2014

Overview:

Since our last analysis, Gold has been trading upwards, the price rejected from the level of 1,182.14 (met both our down stations) and tested level of 1,238.33 on volume above the average. We got FR 61.8 % at the 1,237.00 price, which was held successfully, so we may expect further bearish movement. We can observe volume leveling off in upper leg, which is good sign for further bearish continuation.First downward station may be previous swing high at price 1,219.00. Anyway, if the price breaks the level of 1,238.00 on high volume, we may see further bullish movement before the downwards continuation. Do not forget, gold continues the bearish trend, so buying looks very risky. Watch for selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,229.13

R2: 1,235.21

R3: 1,245.07

Support levels:

S1: 1,209.41

S2: 1,203.33

S3: 1,193.47

Trading recommendation: Trading the metal, be careful with short-term buying and look for selling opportunities.