FX.co ★ Gold : analysis for December 16 , 2015

Overview:

Since our last analysis, gold has been trading sideways around the level of $1,065.00. In the daily time frame, I found a weak demand bar, which is a sign that buying looks risky. The trend is downward in the mid- and long terms. According to the H34 time frame, we can observe a buying climax with a very wide spread of bars and strong reaction from sellers in the background. I found lower swing highs and rejection from our supply trend line, which is a sign of a downward continuation. Our Fibonacci expansion 100% at the level of $1,063.00 was broken and Fibonacci expansion 161.8% at the level of $1,050.00 is next support.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,065.50

R2: 1,068.35

R3: 1,070.45

Support levels:

S1: 1,058.50

S2: 1,056.30

S3: 1,052.45

Trading recommendations: Watch for selling opportunities. The trend is downward in the short and mid terms.