FX.co ★ Gold: analysis for May 21, 2015

Overview:

Gold has been trading sideways around the level of $1,209.00. The price supports cluster around the level of $1,203.00. We can observe supply in a high volume with strong price action in the daily time frame. The short-term trend is neutral. The daily resistance is at the level of $1,224.00 . If the price breaks the level of $1,224.00 in a high volume and strong price action takes place, we may see possible testing at the level of $1,250.00 (Fibonacci expansion 100%). Be careful when selling gold at this stage since we got strong selling climax (stopping volume) in the background. Our Fibonacci retracement 50% at $1,201.00 held successfully. My advice is to watch for potential buying opportunities. Any larger demand will confirm further bullish movement.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,212.00

R2: 1,215.00

R3: 1,218.70

Support levels:

S1: 1,204.20

S2: 1,202.00

S3: 1,198.00

Trading recommendations: Be careful when selling at this stage since we got selling climax in the background and price created cluster (support).