FX.co ★ GOLD analysis for May 05, 2014

Overview

Since our last analysis, gold has been trading upwards, the price rejected from our support level 1,277.00 and tested the level of 1,314.67 on volume above the average according to the 4H chart. As we already posted in the previous analysis, we got our major support level at the price of 1,277.00 and that level held successfully. As you can see in the graph, our major Fibonacci retracement 38.2% (1,315.55) got tested. If the price breaks the level of 1,315.00 on higher volume, we may see testing the levels of 1,330.00-1,344.00 (Fibonacci ratios) before any larger supply. Any larger supply and reaction from our resistance zone may confrim further bearish phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,302.18

R2: 1,302.88

R3: 1,304.03

Support levels:

S1: 1,299.88

S2: 1,299.18

S3: 1,298.03

Trading recommendation: Trading the metal, be careful with short-term buying at this stage since price is testing Fibonacci retracement. Watch for selling opportunities after retracement.