FX.co ★ Gold analysis for October 28 , 2015

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,172.00. The short- and mid-term trend changed from neutral to upward. In the daily time frame, we can observe an upward bar in an average volume. In the H1 time frame, we can observe a volume spike (massive selling climax) in the background at the level of $1,158.75. Be careful when selling at this stage since we may expect buyers' reaction. Only if the price breaks the level of $1,158.75, we may see a downward continuation. Otherwise, a breakout of the level of $1,180.00$ will confirm absorption of strong supply.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,166.55

R2: 1,167.50

R3: 1,169.00

Support levels:

S1: 1,163.50

S2: 1,162.00

S3: 1,161.00

Trading recommendations: Be careful when selling gold at this stage and watch for potential buying opportunities. Anyway, I am waiting for a clear trend to be established.