FX.co ★ Gold : analysis for October 14 , 2015

Overview:

Since our last analysis, gold has been trading upwards. As we expected, the price tested the level of $1,175.90 in a high volume. An intraday trend is upward. In the daily time frame, our strong trading range $1,170.00 (resistance) and $1,098.50 (support) got finally broken. In the H1 time frame, we can observe broken bullish flag and demand in a high volume. I have placed major Fibonacci expansion to find potential objective points. I got Fibonacci expansion 100% at the level of $1,191.00 and Fibonacci expansion 161.8% at the price of $1,247.00.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,166.65

R2: 1,169.30

R3: 1,173.60

Support levels:

S1: 1,158.00

S2: 1,155.30

S3: 1,151.00

Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities on dips. Next resistance level is seen around $1,191.00.