FX.co ★ Gold analysis for November 03, 2015

Overview:

Since our last analysis, gold has been trading downwards. As we had expected, the price tested the level of $1,131.09. The intraday and short-term trends are downward. In the daily time frame, we can observe a strong supply bar in an average volume. In the H1 time frame, in the background we can observe a successful rejection from our strong resistance level at the price of $1,162.00. Besides, according to the H4 time frame, we can observe weak demand bars around the price of $1,137.50, which is a sign that buying looks risky. Watch for selling opportunities. Major daily support is at the price of $1,104.00.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,138.00

R2: 1,139.50

R3: 1,141.80

Support levels:

S1: 1,133.40

S2: 1,131.95

S3: 1,129.50

Trading recommendations: Be careful when buying gold at this stage and watch for potential selling opportunities.