FX.co ★ Gold analysis for January 14, 2014

Overview :

Since our last analysis gold has been trading downwards. The price tested the level of 1,224.78 in a volume below the average. Gold went into weak bearish correction. According to the H4 time frame, we can observe supply in a volume below the average, which is a sign that selling gold at this stage looks risky. We may expect testing the levels of 1,255.00-1,265.00 in next period. Be careful when selling gold and watch for potential buying opportunities on the lows. We got support level at the price of 1,222.00 (swing high like support).

Daily pivot Fibonacci points:

Resistance levels :

R1: 1,241.96

R2: 1,246.00

R3: 1,252.27

Support levels :

S1: 1,228.90

S2: 1,224.86

S3: 1,218.13

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