FX.co ★ Gold analysis for February 19, 2016

Overview:

Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1,239.75.Sellers had no power to break through our support level at $1,196.00. In the daily time frame, I found a solid demand bar in an average volume. The demand remained high, which is a sign that selling gold looks risky at this stage. The trend is upward according to the intraday and short-term time frames. Our Fibonacci retracement 61.8% at the level of $1,134.00 is on the test. If the price breaks the level of $1,134.00, we may see potential testing of $1,263.00. In the H4 time frame, I found very weak supply. The price is above all key MA`s in the short-term frames.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,246.00

R2: 1,261.00

R3: 1,284.00

Support levels:

S1: 1,209.00

S2: 1,186.50

S3: 1,171.35

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