FX.co ★ Gold : analysis for March 03 , 2016

Overview:

Since our last analysis, gold has been trading upwards. The price tested the level of $1,245.73. In the daily time frame, I found a demand bar in a volume below the average. Intraday buying looks risky because I found a strong resistance cluster at the price of $1,246.00. We got few signs of potential distribution by professional market players.

1. Massive buying climax in the backgorund

2. Up-thrust strong sign of weakness

3. Weak demand near climactic cluster

Watch for potential selling opportunities on the rallies. First take profit is set around the price of $1,209.00.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,242.00

R2: 1,247.70

R3: 1,253.20

Support levels:

S1: 1,230.30

S2: 1,226.00

S3: 1,219.00

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