FX.co ★ GOLD analysis for February 12, 2014

Overview:

Since our last analysis, gold has been trading upwards, like we expected, the price tested the level of 1,293.82 on ultra high volume (buying climax). Since the price has tested the level of 1,293.82, we have got our upper station at the price of 1,292.00 (FR 61.8 %). If the price breaks the level of 1,292.00 on higher volume, we may see testing the level of 1,298.00 (FE 61.8%). Be careful with buying at this stage since we are in strong Fibonacci area. Our advice is to watch for potential bearish movement in case that we get strong supply on the market.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,292.37

R2: 1,297.09

R3: 1,304.73

Support levels:

S1: 1,277.09

S2: 1,272.37

S3: 1,264.73

Trading recommendation: Trading the metal, be careful with buying since we are in strong Fibonacci area.