FX.co ★ Gold analysis for July 17, 2014

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of 1,308.00 in a volume above average according to the 1h timeframe. According to the daily timeframe, we can observe weak demand on the market in a volume below the average, which is a sign that buying at this stage looks risky. Now, we are in a smaller bullish corrective phase, so I have placed Fibonacci retracement to find potential resistance levels. I got Fibonacci retracement 38.2% at the price of 1,312.00. Our first support level at the price of 1,305.00 has been reached. So, we may expect testing the level of 1,282.00 (Fibonacci retracement 61.8%) in next period.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,303.26

R2: 1,305.78

R3: 1,309.87

Support levels:

S1: 1,295.08

S2: 1,292.56

S3: 1,288.47

Trading recommendation: Be careful with buying and watch for potential selling opportunities after retracement