FX.co ★ GOLD analysis for February 28, 2014

Overview:

Since our last analysis, gold has been trading sideways, around the price of 1,330.00. Our previous analysis is still active and buying at this stage looks risky.  The Gold rejected from our critical resistance area at the price of 1,338.00. We got FR 61.8% atthe price of 1,338.00 and that level held successfully, which is a good sign forthe potential bearish movements. According to daily chart, we can weak demand on the average volume. Anyway, to confirm further downward movement, we need to see stronger supply on the market on high volume. My advice is to watch for potential bearish movement. I've placed Fibonacci levels to find first down stations and i got submajor Fibonacci retracement 38.2% at the priceof 1,304.00 and Fibonacci retracement 61.8% at the price of 1,280.00.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,335.43

R2: 1,338.31

R3: 1,342.97

Support levels:

S1: 1,326.11

S2: 1,323.23

S3: 1,318.57  

Trading recommendation: Trading the metal, be careful with buying since Gold is around critical area and we are also on the high new ground.