FX.co ★ GOLD analysis for January 23, 2014

Overview:

Since our last analysis, gold has been trading upwards, as we expected, the price tested the level of 1,247.98 on high volume. We can observe rejection on the high volume from our FR 61.8 % at 1,230.00 which caused an upward movement. Since the price has broken in the background the level of 1,254.00, we may expect testing of previous swing high at 1,260.00 and possible testing of major FE 100 % 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, and we saw volume leveling off in the background. Watch for buying opportunities on the dips.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,241.58

R2: 1,243.42

R3: 1,246.40

Support levels:

S1: 1,235.62

S2: 1,233.78

S3: 1,230.80

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