FX.co ★ GOLD : Analysis for January 06, 2014

Overview:

Since our last analysis, gold has been trading upwards, the price rejected from the level of 1,246.03 on lower volume. Price broke our FR 61.8 % (1,237.00) , which is sign that we may see larger bullish correction. There is always a chance that price may test previous swing high at price 1,220.00 before upward movement. Next upper station may be of FR 38.2 % at price 1,279.00-1,295.00 . Do not forget, gold is in bearish trend and we are now in bullish corrective phase. Anyway, to confirm further bullish movement, we need strong demand on high volume on the market. Selling gold at this stage looks risky since gold is in progress of bullish corrective phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,236.58

R2: 1,237.62

R3: 1,239.30

Support levels:

S1: 1,233.22

S2: 1,232.18

S3: 1,230.50

Trading recommendation: Trading the metal, be careful with selling gold and try to catch bullish corrective phase.