FX.co ★ Gold : analysis for March 01 , 2016

Overview:

Since our last analysis, gold has been trading upwards. As I expected, the price tested the level of $1,248.35. In the daily time frame, I found a demand bar in an average volume. At this stage, selling looks risky. Our key MA`s are heading upwards (upward trend). The key resistance level is seen at $1,262.70. If the price breaks the level of $1,262.70 in a high volume, we may see potential testing of $1,307.00. According to 4H time frame, I found successful rejection from upward trendline at the price of $1,210.00. Demand overcame supply near upward trendline, which is a sign of strength. According to 1H time frame, we can observe selling climax in the background, which bring professional buyers on the market.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,243.20

R2: 1,248.00

R3: 1,256.00

Support levels:

S1: 1,226.40

S2: 1,221.00

S3: 1,113.00

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