FX.co ★ Gold analysis for June 09, 2014

Since our last analysis, gold has been trading upwards, as we expected. The price tested the level of 1,257.60 on ultra high volume (buying climax) according to the 1H chart. As you can see in the graph, we saw strong rejection on ultra high volume (selling climax) from our resistance level at the price of 1,257.00. Anyway, the price tested our Fibonacci retracement 61.8% (1,247.00) and that caused price to start bullish continuation. Be careful with selling Gold at this stage since price rejected from Fibonacci retracement in the background. If the price breaks the level of 1,257.50 (swing high), we may see possible testing the level of 1,268.00 (swing low like resistance)

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,254.38

R2: 1,254.98

R3: 1,255.93

Support levels:

S1: 1,252.48

S2: 1,251.88

S3: 1,250.93

Trading recommendation: Watch for potential bullish movement if the price breaks the level of 1,257.50