FX.co ★ Gold : analysis for October 23, 2014

Overview:

Since our last analysis, gold has been trading sideways downwards. As we expected, the price tested the level of 1,231.96. Our submajor Fibonacci retracement 38.2% at the price of 1,245.00 took place successfully, which caused the price to go downwards. According to the daily time frame, we can observe weak demand and weak price action. Gold is now in a bearish corrective phase so I have placed Fibonacci retracement to find potential support levels and I got Fibonacci retracement 38.2% at the price of 1,227.00 and Fibonacci retracement 61.8% at the price of 1,210.00.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,249.10

R2: 1,251.34

R3: 1,254.97

Support levels

S1: 1,241.84

S2: 1,239.60

S3: 1,235.97

Trading recommendations: Watch for potential intraday selling opportunities