FX.co ★ Gold analysis for December 23, 2014

Overview :

Since our last analysis, gold has been trading downward. The price has tested the level of 1,170.63 in a ultra high volume (selling climax). I placed Fibonacci retracement to find potential support levels and got Fibonacci retracement 61.8% at the price of 1.172.00 (currently on the test). According to the H4 time frame, we can observe selling climax in the background, which is a sign that selling gold at this stage looks very risky. My advice is to watch for potential buying opportunities near the lows. Any larger demand in a high volume may confirm further bullish phase. According to the daily time frame, we can observe supply in a volume below the average.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,197.27

R2: 1,205.03

R3: 1,217.60

Support levels:

S1: 1,172.13

S2: 1,164.37

S3: 1,151.80

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