FX.co ★ GOLD: analysis for January 17, 2014

Overview:

Since our last analysis, gold has been trading upwards, the price tested the level of 1,244.90 on high volume.We can also observe that demand has entered the market at 1,237.50 which caused the price to start small bullish movement. If the price breaks the level of 1,245.00 on high volume, we may see re-testing of previous swing high level at 1.254.00. Next major upper stations are at 1,279.00 and 1,295.00 but just if price breaks level of 1,254.00 on high volume. Do not forget, gold is in bearish trend and we are now in bullish corrective phase.There is also a chance that we may see testing of levels around 1,232.00-1,227.00, before another bullish movement. Selling gold at this stage looks risky since gold is in progress of bullish corrective phase, and we saw demand on the high volume in the background. Watch for buying opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,244.16

R2: 1,246.24

R3: 1,249.60

Support levels:

S1: 1,237.44

S2: 1,235.36

S3: 1,232.00

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