FX.co ★ Gold analysis for October 07, 2014

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of 1,212.40. Our Fibonacci retracement 61.8% at the price of 1,207.00 held successful, which is a sign that buying gold at this stage looks risky. According to the daily chart, we can observe demand in a volume below the average. According to previous price action, we got resistance level at the price of 1,204.00 (swing low like resistance). According to Fibonacci expansion, first down station may be around the price of 1,189.00 (Fibonacci expansion 61.8%). Any l arger supply in a high volume may confirm further bearish movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,217.04

R2: 1,.226.77

R3: 1,243.64

Support levels

S1: 1,190.44

S2: 1,173.57

S3: 1,163.54

Trading recommendations: Buying still looks risky since our Fibonacci retracement 61.8% held successful