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

Overview:

Since our last analysis, gold has been trading sideways at the level of $1,203.00. My yesterday's forecast is still in play. It seems like sellers had no power to break through our support level at $1,196.00. In the daily time frame, I found a weak demand bar in an average volume. The demand remained high, which is a sign that selling gold looks risky at this stage. I found Fibonacci retracement 38.2% at the level of $1,181.00 and Fibonacci retracement 61.8% at the level of $1,131.00. The trend is upward according to the intraday and short-term time frames. The level of $1,235.00 may provide strong resistance. The price is above all key MA`s. Our 10 SMA has been successfully held according to the daily time frame. Anyway, if the price continues to move lower, we may see potential testing of $1,181.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,211.90

R2: 1,215.80

R3: 1,222.00

Support levels:

S1: 1,199.50

S2: 1,195.50

S3: 1,189.20

Trading recommendations: Be careful when selling gold and watch for potential buying opportunities on dips.