FX.co ★ Gold analysis for February 02, 2014

Overview :

Since our last analysis gold has been trading upwards. As we expected, the price has tested the level of 1,284.87 in a volume above the average. According to the H4 time frame, we got selling climax in the background, what caused the price to start with upward movement. Our submajor Fibonacci retracement 38.2% at the price of 1,254.00 has been held successfully which is a sign that selling gold at this stage looks risky. Anyway, if the price breaks the level of 1,254.00 in a strong volume, we may see a possible testing of the level of 1,240.00 (Fibonacci expansion 161.8%). Resistance level is around the price of 1,307.00 (swing high like resistance).

Daily Fibonacci pivot points :

Resistance levels :

R1: 1,282.78

R2: 1,283.52

R3: 1,284.70

Support levels :

S1: 1,280.42

S2: 1,279.68

S3: 1,278.50

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