FX.co ★ GOLD analysis for February 11, 2014

Overview:

Since our last analysis, gold has been trading upwards, like we expected, the price tested the level of 1,287.53 on average volume. We can observe strong demand and weak supply in the past two days. Selling at this stage looks risky because of strong demand in the background. We may see possible testing the level of 1,292.00 (FR 61.8%)-1,298.00 (FE 61.8%) and extended major bullish corrective phase. Our advice is to try to catch bullish corrective phase and to build bullish positions on the dips.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,277.05

R2: 1,280.05

R3: 1,284.90

Support levels:

S1: 1,267.35

S2: 1,264.35

S3: 1,259.50

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