FX.co ★ Gold analysis for June 10, 2014

Overview:

Since our last analysis, gold has been trading sideways, around the price of 1,255.00. We are still waiting for larger movement. 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. According to the 1h timeframe, we can observe demand on ultra high volume (buying climax). 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: 1,256.94

R2: 1,259.97

R3: 1,262.64

Support levels:

S1: 1,251.24

S2: 1,248.57

S3: 1,245.54

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