FX.co ★ GOLD: analysis for January 07, 2014

Overview:

Since our last analysis, gold has been trading downwards, the price rejected from the level of 1,216.61 and tested the level of 1,247.89 on very high volume, as we expected. Price rejected from Fibonacci Retracement level 38.2 % at 1,223.00 (previous swing high). I placed Fibonacci levels to find potential upper station and I got FE 61.8 % at 1,256.00 and FR 38.2 % at 1,279.00-1,295.00. Do not forget, gold is in bearish trend and we are now in bullish corrective phase. Selling gold at this stage looks risky since gold is in progress of bullish corrective phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,245.76

R2: 1,253.48

R3: 1,265.97

Support levels:

S1: 1,220.78

S2: 1,213.06

S3: 1,200.57

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