FX.co ★ Gold analysis for January 20, 2016

Overview:

Since our last analysis, gold has been trading sideways around the level of $1,093.00. In the daily time frame, we can observe a weak a supply bar and a test of resistance cluster at the level of $1,096.00. Also, the price is below the 200SMA and 100SMA, but above 50SMA. Buying at this stage looks risky since the price is at the resistance level. The intraday trend is neutral. An intraday target is seen 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. Anyway, if the price breaks the level of $1.097.00, we may see a potential test of $1,108.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,092.65

R2: 1,095.00

R3: 1,098.50

Support levels:

S1: 1,085.40

S2: 1,083.15

S3: 1,079.50

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