FX.co ★ Gold analysis for October 17, 2014

Overview:

Since our last analysis, gold has been trading sideways around the price of 1,238.00. We are facing very quiet day on the market and very low volume. We can observe rejection from our resistnace level at the price of 1,244.00 (Fibonacci retracement 38.2%). I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1,224.00. According to the 4H timeframe, we can observe sideways movement in a volume below the average. We are waiting for larger volume and stronger price action . Be careful when buying and watch for potential selling opportunities. Any larger supply may confirm futher bearish movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,244.64

R2: 1,247.10

R3: 1,251.07

Support levels

S1: 1,236.70

S2: 1,234.24

S3: 1,230.27

Trading recommendations: Buying still looks risky since gold is near resistance level.