FX.co ★ Gold : analysis for December 08, 2014

Overview :

Since our last analysis, gold has been trading downwards. As we expected, the price tested and rejected from the level of 1,186.03 in an ultra high volume. Our Fibonacci expansion 100% at the price of 1,186.00 held successful, which is a sign that selling looks risky. My advice is to look for buying opportunities near the lows (after retracement). Any larger reaction from buyers may confirm further bullish continuation. We got resistance level at the price of 1,220.00 (swing high like resistance). According to the 4H time frame, we got selling climax and a potential end of the bearish corrective phase (abcd).

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,191.67

R2: 1,192.83

R3: 1,194.70

Support levels:

S1: 1,187.93

S2: 1,186.77

S3: 1,184.90

Trading recommendations: Watch for potential buying opportunities after retracement (buy on the lows).