FX.co ★ Gold analysis for October 03, 2014

Overview:

Since our last analysis, gold has been trading downwards. As we expected, the price rejected from our Fibonacci retracement 61.8% (1,223.00) and tested the level of 1,194.98. Our down staion at the price of 1,194.00 (Fibonacci expansion 100%) has been met. According to the daily chart, we can observe healthy bearish price action, which is sign that buying looks very risky. If the price breaks the level of 1,194.00 in a high volume, we may see possible testing the level of 1,182.00 (swing low like support).

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,221.23

R2: 1,225.28

R3: 1,230.97

Support levels

S1: 1,210.38

S2: 1,206.86

S3: 1,201.17

Trading recommendations: Buying still looks risky since we got strong selling pressure on the market and low reaction from buyers