FX.co ★ GOLD analysis for March 12, 2014

Overview:

Since our last analysis, gold has been trading upwards, the price tested the level of 1,366.78 on volume above the average. Since the gold has broke our major resistance level at the price of 1,355.00, we may expect testing the level of 1,395.00-1,401.00 (Fibonacci levels). According to daily chart, we can observe weak supply in the background, which is sign that selling at this stage looks risky.  My advice is to watch for buying opportunities on the dips.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,351.88

R2: 1,355.38

R3: 1,361.03

Support levels:

S1: 1,340.58  

S2: 1,337.08

S3: 1,331.43

Trading recommendation: Trading the metal, be careful with selling since we may see more upward movements.