FX.co ★ Gold analysis for October 08, 2014

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of 1,220.40. I have placed Fibonacci retracement to find potential resistance level and I got Fibonacci retracement 61.8% at the price of 1,219.00. 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 1,221.00 (swing high like resistance). Any l arger supply in a high volume may confirm further bearish movement. Anyway, if the price breaks the level of 1,221.00, we may see testing the level of 1,230.00.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,214.07

R2: 1,.216.69

R3: 1,220.93

Support levels

S1: 1,205.59

S2: 1,202.97

S3: 1,198.73

Trading recommendations: Buying still looks risky since our Fibonacci retracement 61.8% is on the test