FX.co ★ GOLD analysis for February 10, 2014

Overview:

Since our last analysis, gold has been trading upwards, the price tested the level of 1,275.00 on volume above the average. We can observe strong demands in the background and since price did not break our level of 1,238.00 for the further downward movement, we may expect further upward movement. Selling at this stage looks risky because of strong demand in the background. If the price breaks the level of 1,282.00 (previous swing high) on higher volume, we may see possible testing the level of 1,292.00-1,298.00 and extended major bullish corrective phase. Selling gold at this stage looks risky since we may see more upward movement before the large downward movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,269.07

R2: 1,270.07

R3: 1,271.67

Support levels:

S1: 1,265.87

S2: 1,264.87

S3: 1,263.27

Trading recommendation: Trading the metal, be careful with selling since we may see possible testing the level of 1,292.00-1,298.00