FX.co ★ Gold analysis for September 17, 2015

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,123.92. The intraday trend is neutral. According to the daily time frame, we can observe a demand bar in an average volume. According to the H4 time frame, we can observe a volume spike (potential buying climax) bar and weak close of the bar (closed on the middle), which means buying looks very risky at this stage and that selling is preferable. My advice is to watch for potential selling opporutnities after retracement. Support levels are at the prices of $1,107.60 and $1,100.00.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,120.15

R2: 1,122.55

R3: 1,126.40

Support levels:

S1: 1,112.45

S2: 1,110.00

S3: 1,101.95

Trading recommendations: Volume spike (potential buying climax) is at the price of $1,123.60. Be very careful when buying gold at this stage and watch only for selling opportunities after retracement. We may expect strong reaction from sellers and potential absorption volume.