FX.co ★ Analysis of gold for February 11, 2016

Overview:

Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1,241.85 in a high volume. The metal reached our second short-term target at $1,232.00. Next upward target is set around $1,305.00. A strong upward bar in a high volume is seen in the daily time frame. The M30 time frame shows strong upward pressure and a very weak supply from the other side. Since gold is still in an uptrend according to the lower time frames, watch for potential buying opportunities on dips. Selling looks very risky as demand remains in a very high volume.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,199.80

R2: 1,203.80

R3: 1,210.30

Support levels:

S1: 1,186.90

S2: 1,182.50

S3: 1,176.50

Trading recommendations: Watch for potential buying opportunities on dips.