FX.co ★ Gold analysis for June 26, 2014

Overview:

Since our last analysis, gold has been trading downwards, the price tested the level of 1,305.94 on volume above the average. As you can see in the graph, the price has broken our Fibonacci expansion 100% at the price of 1,305.00, so we may see possible testing the level of 1,334.00 (Fibonacci expansion 161.8%). According to the daily timeframe, we can observe another indecision bar on volume above the average, which is a sign that buying at this stage looks risky. Be careful with buying since we may see potential bearish correction. According to the previous price action, we got a support level at the price of 1,300.00 (Fibonacci retracement 38.2%). According to the 1H timeframe, we can observe strong buying climax bar (bullish bar on ultra high volume) and testing of Fibonacci retracement 61.8% at the price of 1,317.15 so be careful with buying at this stage.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,325.59

R2: 1,330.35

R3: 1,338.07

Support levels:

S1: 1,310.15

S2: 1,305.39

S3: 1,297.67

Trading recommendation: Be careful with buying at this stage since we have got buying climax in the background.