FX.co ★ Gold : analysis for December 21 , 2015

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,080.00. In the daily time frame, I found a strong demand bar, which is a sign that selling looks risky. The trend is downward in the mid- and long terms. In the 4H-time frame, we can observe successful breakout of strong trendline, which gave us a sign that we may see further upside. The first resistance is seen at the level of $1,088.70. Key price action resistance is around the price of $1,100.00.

Daily Fibonacci pivot points:

Resistance levels

R1: 1,065.50

R2: 1,066.20

R3: 1,066.80

Support levels:

S1: 1,063.90

S2: 1,063.40

S3: 1,062.60

Trading recommendations: Watch for potential buying opportunites, selling looks risky.