FX.co ★ Gold : analysis for January 18 , 2016

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,097.13. In the daily time frame, we can observe a a weak close of a supply bar (bar closed on the middle) . Buying at this stage looks risky since the price rejected our strong resistance. The intraday trend is neutral. In the H1 time frame, I found a volume spike (buying climax) and a wide spread of bars. Buying at this stage looks very risky. An intraday target is set at the level of $1,071.00. Be careful when buying gold at this stage and watch for potential selling opportunities. The key support is found at the level of $1,046.00. A potential breakout of the level of $1,046.00 will confirm short-term continuation of the downward trend.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,090.75

R2: 1,091.25

R3: 1,092.00

Support levels:

S1: 1,089.00

S2: 1,088.55

S3: 1,087.70

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