FX.co ★ Gold analysis for December 15, 2014

Overview :

Since our last analysis, gold has been trading downward. The price tested the level of 1,209.42 in a volume below the average. Our corrective Fibonacci expansion 100% at the price of 1,209.00 is on the test so be careful when selling gold at this stage. I placed Fibonacci retracement to find potential support levels and got Fibonacci retracement 61.8% at the price of 1,206.00. My advice is to look for buying opportunities near the lows (after retracement). According to the 4H time frame, we can observe supply in a volume below the average. So, selling gold at this stage looks risky, watch for potential buying oppoprtunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,224.21

R2: 1,224.95

R3: 1,226.13

Support levels:

S1: 1,221.85

S2: 1,221.11

S3: 1,219.93

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